The government is reportedly stepping up plans for the big energy utility Bulb to collapse – as it happened | Companies

Good morning and Welcome to our ongoing coverage of the world economy, financial markets, the euro zone and business.

UK homeowners are warned that years of extremely low mortgage costs are coming to an end and are now facing the largest cost spike since the financial crisis.

Property owners could expect the interest they pay to rise by 13% in 2023, according to forecasts by the government’s independent forecasting unit.

Politicians and analysts seized a table that was “buried” next to the budget in an OBR report that stated that mortgage interest payments would expect their largest increase since at least 2008.

Lenders have been pulling their cheapest mortgage contracts for some time, expecting the Bank of England to raise rates from historic lows.

Financial markets are already pricing in a rate hike when the Bank of England meets next week, which could raise rates to 0.25%, followed by a 0.25 point hike in December. Since two further increases of 0.25% are forecast for the next year, the key rate could rise to 1% by the end of 2022.

My colleagues Rupert Jones and Philip Inman have the full story about mortgage cost prediction here:

Looking ahead this morning, there is a range of third-quarter GDP data expected from Eurozone economies, as well as inflation numbers from the October bloc. Inflation statistics are being watched particularly closely after the European Central Bank insisted yesterday that higher inflation was temporary and pushed back against market bets that interest rates should rise early next year.

In other news, debt-laden Chinese real estate developer Evergrande reportedly made an overnight interest payment on an offshore bond before the grace period expired. According to Reuters, a catastrophic payment default could only just be averted for the second time within a week.

Evergrande has approximately $ 300 billion in debt.

You can read the whole story here:

The agenda:

09.00 BST Germany Flash Q3 GDP
09.00 BST Italy Flash Q3 GDP
09.30 BST Portugal Flash Q3 GDP
10.00 BST Eurozone Flash Q3 GDP
10.00 BST Eurozone October inflation
1.30 p.m. CEST US core price index PCE

Source link

About Nina Snider

Check Also

Royals eagerly await the aftermath of Prince Andrew’s disgrace | Prince Andrew

Prince Andrew, the Duke of York, KG, GCVO, CD, ADC, will be 62 next month. …

Leave a Reply

Your email address will not be published. Required fields are marked *