State of Play. 22 June 2023
Safe as houses?
The battle to tame rising prices is a complex one that policymakers must navigate carefully to avoid unintended consequences. Ever since the global financial crisis, mortgage borrowers have experienced a golden period of historically low interest rates, resulting in much lower monthly payments. The return of inflation and the response from central banks has brought this favourable environment to an abrupt end. When the Bank of England met this week to decide whether to increase interest rates, did they have one eye on the mortgage market? What does their decision mean for savers and investors?
Santander Asset Management UK’s Senior Investment Specialist, Simon Durling, shares his thoughts in this week’s State of Play.