Jackie Bowie reviews the U.K. housing crisis and interest rates on Bloomberg The Pulse
Summary
The Pulse with Francine Lacqua interviews Jackie Bowie on the U.K. housing crisis and the projection of fewer interest rate cuts.
As the U.K. Competition and Markets Authority (CMA) launches a competition probe into homebuilders, the U.K. housing market is seeing the affects of interest rates as economic headwinds continue to consolidate the sector. With markets shifting their expectation of six rate cuts to four, the number of interest rate cuts will continue to be the story for 2024.
Jackie Bowie on Bloomberg's The Pulse"There is a concern that this last leg down of inflation might be a little tougher to achieve than the markets were thinking at the end of last year."
In addition to the bond market, other labour data is crucial for all central banks when looking at the forecast of interest rates. The U.K. is looking towards the U.S. economy as the labour market has been a direct reflection of its economic strength.
Jackie Bowie on Bloomberg's The Pulse"Consumers [U.S.] are positive. They're also cash rich, which is keeping the economy stronger, which is why the market priced in that those rate cuts would come soon and there would be plenty of them."
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