UK Interest Rates: A rise very likely according to Betfair market

UK Interest Rates: A rise very likely according to Betfair market”

Ben Kumar, an investment manager at 7IM delivered comment that was a little more positive: "The market has been pricing in a November interest rate hike at an 80 per cent probability since the start of October".

UK GDP rose by 0.4 per cent in the third quarter of the year, the Office for National Statistics revealed.

If it happens, it will be the first rise since 5 July 2007. In this scenario, the average variable rate borrower on a repayment loan would see their monthly payment rise by £16.56, that's £82.8million across the UK.

United Kingdom economist Ruth Gregory, of research company Capital Economics, said the figures "have probably sealed the deal on an interest rate hike next week".

"The Bank of England is eager to undo the emergency rate-cut made following the referendum, and today's GDP release will bolster their case - without being so strong as to make investors nervous about a rate hiking cycle beginning in earnest".

"We would urge the (BoE) to proceed with caution on raising rates, as tightening monetary policy amid the current economic and political uncertainty could weaken growth", said Suren Thiru, head of economics at the British Chambers of Commerce.

The slightly better growth figures will strengthen the arguments of the interest rate hawks on the Bank of England's monetary policy committee. Recent comments by ratesetters, including Mark Carney, the governor, have raised expectations for an imminent increase.

And with economic growth more robust than many economists expected, those who support that direction of travel on the MPC will be emboldened. And these are the main reasons Stone believes a rate rise is on the cards. That hasn't happened in the U.S., where rates have been rising gradually. A London based borrower with 20 years left on their mortgage, now paying an interest rate of 2.25%, would see annual charges increase by £336.

The pound ticked up against both the euro and the dollar after the figure was released.

Mr Hammond said: 'We have a successful and resilient economy which is supporting a record number of people in employment. In a separate statement, he said he was focused on boosting productivity - arguably Britain's biggest economic problem - in order to create more higher-wage jobs.

Shadow chancellor John McDonnell said: "The UK is not growing as fast as many of our trading partners in the European Union or the USA".

A second quarter of contraction means the sector is technically in recession.

In particular, computer programming, motor traders and retailers were the businesses that showed the strongest performance.

But manufacturing also soared by 1 per cent over the quarter, as Britain's factories returned to growth after a period of decline.

Like this


26 October 2017
Kaspersky says suspected NSA code was lifted from United States computer
Kaspersky's antivirus software had been configured to automatically send new malware samples back to the company for analysis hence why they had ended up with a copy.

26 October 2017
Lockheed Martin Corporation (NYSE:LMT) declared EPS
The Company is engaged in the research, design, integration and sustainment of advanced technology systems, products and services. The Commonwealth Equity Services Inc holds 109,245 shares with $30.33 million value, up from 100,575 last quarter.

26 October 2017
November 2017 Games with Gold announced
As always, these games are only "free" if you have an active Xbox Live Games with Gold subscription. Take a look at the Xbox Live Games With Gold November 2017 line-up.

26 October 2017
PM cheered as she drops cap on housing benefit
She said: "This cap would have hit the most vulnerable in our society, including the homeless and victims of domestic violence living in shelters".

26 October 2017
Lindsey Graham to testify at Senate corruption trial
Booker, who has been friends with Menendez since being elected to the Senate four years ago, said he supports his "good fight". Around the same time, a Republican state senator from New Jersey said he had passed on similar information to the U.S.

26 October 2017
Not At Home? Amazon Wants To Come In And Drop Off Packages
And the alternative, in many cases, is risking the possibility of someone stealing a package from your doorstep. The camera then streams video to the customer who remotely can watch the in-home delivery take place.

26 October 2017
The Henderson Group PLC Has $5244000 Stake in Kinder Morgan, Inc. (KMI)
R-M Sincerbeaux Capital Management bought 70,000 shares as the company's stock declined 10.34% while stock markets rallied. The New York-based X Ltd Liability has invested 0.82% in Kinder Morgan Inc (NYSE: KMI ). (NASDAQ:AAPL) on Monday, May 22.

26 October 2017
Pictet Asset Management Ltd. Raises Stake in Bristol-Myers Squibb Company (BMY)
Maximum and minimum EPS estimate for the current quarter is projected at $0.69 and $0.58, respectively, according to 18 analysts. Quantum Cap, a California-based fund reported 12,044 shares. 1,778,294 shares of the company's stock were exchanged.

26 October 2017
'Bad Boys' Spinoff TV Series Starring Gabrielle Union is Reportedly Coming Soon
The project's producers are Bruckheimer, Gaspin, Jonathan Littman, KristieAnne Reed and Union manger, Jeff Morron. Syd Burnett works as an undercover operative with with the Drug Enforcement Administration (DEA).

26 October 2017
Coca-Cola profit rise 38 percent, on higher Sprite demand
It improved, as 49 investors sold KO shares while 618 reduced holdings. 123 funds opened positions while 504 raised stakes. The company reported $0.60 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.58 by $0.02.