good morning, and Welcome to our rolling coverage of the world economy, financial markets, the eurozone and trade.
British homeowners are being warned that years of ultra-low mortgage costs are coming to an end, and are now facing the biggest increase in costs since the financial crisis.
According to forecasts by the government’s Independent Forecasting Unit, property owners can expect the amount of interest they will pay to jump 13% in 2023.
A report published by politicians and analysts found “buried” seized on a table. Office for Budget Responsibility (OBR) budget, which said mortgage interest payments were set for their biggest increase since at least 2008.
It’s been a while already, with lenders pulling their cheapest mortgage deals in hopes of raising interest rates from historic lows for the Bank of England.
Financial markets are already pricing in a rate hike when the Bank of England meets next week, which could raise the base rate to 0.25%, followed by a 0.25-point increase in December. With two further 0.25% hikes forecast for the next year, which could take the base rate to 1% by the end of 2022.
My colleagues Rupert Jones and Philip Inman have got the full story on mortgage cost predictions here:
Looking later this morning, there are expected third quarter GDP data from eurozone economies, as well as inflation numbers from the bloc for October. Inflation figures will be particularly close after the European Central Bank insisted yesterday that high inflation was only temporary And pushed back against market bets that rates would have to be raised early next year.
Meanwhile in other news overnight, debt-ridden Chinese real estate developer evergrande The interest on an offshore bond is reportedly paid for a grace period before the deadline. This means that it has reduced a catastrophic default for the second time in a week, according to Reuters.
Evergrande is grappling with some $300bn (£218bn) in liabilities, which have raised concerns about the impact on the world’s second-largest economy if it was not able to meet its repayments.
You can read the full story here:
work schedule:
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
13.30 BST US September Core PCE Price Index
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