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3rd Nov 2021 18:00U.K., Economic Monitor

  • The effective mortgage rate will be just 20bp or so higher at the end of 2022, if markets' Bank Rate view is right.
  • The interest rate on bank deposits would rise by more, so households' net interest payments would fall, initially.
  • The housing market, however, looks like the weak link; we expect house prices to flatline in H1 2022.

bank bank rate banks borrowing businesses confidence debt deposits employment finance growth growth rate h1 house prices households housing interest payments interest rate interest rates investment loan-to-income ratio ltv markets mortgage mortgage rates mortgages mpc prices rate hike rates savings spending sterling stock

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Keywords for: Look to the Housing Market, not Interest Payments, for Rate Hike Pain

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