Vastly divergent policies from
global central banks have sparked investor concern that 2015 is set to
be a turbulent year, as the Bank of England (BoE) details the dangers
that an interest rate rise poses for the nation's housing market. "Next
year is going to be massively volatile because you've got all the major
central banks doing things they don't really know how to do," Peter
Sullivan, head of European equities at HSBC, told CNBC Monday. The U.S.
Federal Reserve and the BoE are on course to raise their main interest
rates from record lows either next year or at the beginning of 2016.
This is in contrast to the euro zone and Japan, where key interest rates
are likely to remain low for the next few years.
Read More The
two main threats that are shaking global firms Interest rates - which
are benchmarks for all sorts of mortgages and loans - were cut after the
global financial crash of 2008 in the hope of stimulating lending.
However, with both the U.K. and U.S. economies seeing better growth and
falls in unemployment levels, expectations are high that there will be a
change in policy in the near future.
'Disorderly
normalization' Ratings agency Moody's warned of "disorderly
normalization" in its 2015 outlook, adding that rate rises could hit
growth and undermine sovereign credit quality.
No comments:
Post a Comment