A recent reuters poll of 60 economists has concluded that the base rate will remain at just 0.5% till at least October of next year – but what does this mean for mortgage customers? Well unless the Eurozone sorts out the governmental borrowing then banks will stop lending to each other and no amount of QE will sort that out in a hurry.
The important rate at the current time is the Libor rate – the rate at which banks lend to each other and if they won’t lend this rate shoots up and it feels like 2008 all over again…over to you Europe
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