OK, all the talk is of interest rates moving downwards. The current Bank of England base rate base is 5.25% but mortgage variable rates are over 8%, twice what they were but a couple of years ago. The big problem is for those who have been on very comfortably low fixed rates, many not much over 1%. Those are ending after 2, 3 or 4 years. The best new rates available take into account the expectation that things will get better, but 4% could still double your monthly payment. Which for the government’s clichéd, suffering hard-working family, not enjoying much in the way of wage growth, is still more of a struggle. That, of course, is the idea, if you can’t afford to buy stuff, the laws of demand of supply mean prices, and so inflation, should come down. Not much consolation, though, if the stuff in question is the food on your table.
“Trade war: Stock markets rally as Trump rows back on Fed and China threats”
Yet another reminder, should one be needed, of how quickly things can and will change. A nod and a wink in the right direction from himself and/ or an underling can provide the solace the money men crave and turn a plummet into, if not a soar at this stage, then certainly a bounce.
