Worldwide Financial Planning

European government bonds led the rally following comments from several ECB members that appeared to confirm the view that the bank has finished hiking following the rapid slowdown in inflation. This was supported by lacklustre European economic growth.

When you apply for a mortgage, try to avoid making your way around lenders and applying to each of them. Each time you do that, there is a search created against your name, which lowers your credit rating, particularly if you are turned down.

Better news for inflation and a gradual slowdown in economic activity raised hopes that the Federal Reserve may be able to engineer a soft landing, and bond markets are now hoping for rate cuts in the first half of next year. This caps a good month for markets and fixed income and global equities made significant gains.

With confusion and worry (better described as negative imagination), it’s not that difficult for society to develop a ‘wait and see’ attitude, which could inevitably dry up supply, or demand, which creates the self-fulfilling prophecy of: The housing market will slow. And it did.

The early introduction of this tax cut raises the possibility of an election in early 2024 as the Conservatives weigh up whether this is long enough for workers to feel the benefit against the potential for a rate hike if inflation stays high. The Office for Budget Responsibility’s assessment of the outlook was lukewarm at best.

The role of a central bank is to keep an economy in check. One of their biggest risks is wage inflation. That can cripple economies, as businesses who are struggling with inflation themselves are being asked for wage rises as their staff struggle with hiked costs.