Quote:
Originally Posted by Ross
Apparently on the news it says a lot of it has to do with the fact the US is lowering interest rates in order to prevent a recession. Whereas here, we are putting them up since borrowing has never been more popular. Thats leading to investors putting their money into the UK and Europe coz in the short term they are getting more returns than the US would give.
I wish we would just drop our interest rates quickly. Apparently by the end of next year we should be back down to around 5%. I remember it was 4.5% about 18 months ago.
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It's a different scenario, but the UK home market is about to do the same as the US soon - tho nowhere as severe. That's one of the major reasons for rising interest rates - to cut the level of house market borrowing and noticed a couple of reports today which indicate that is working.
So... interest may come down again soon
