Higher interest rates mean more expensive mortgages
But changes in the British housing market mute their effect
IF THE ECONOMY is a machine, then monetary policymakers are backroom engineers. On November 4th they held the Bank of England’s interest rate steady at 0.1%, but seem poised to tweak it upwards soon. Investors expect the rate to rise above 1% by the end of 2022, the biggest escalation since 2006. But as the technicians tinker, they face huge uncertainty.
This article appeared in the Britain section of the print edition under the headline “Raising the roof”
Britain November 6th 2021
- Britain’s government goes to disgraceful lengths to protect a Tory MP
- Judicial independence is under threat in Britain
- COP26 in Glasgow gets off to a chaotic start
- Britons love e-cigarettes—and ministers want to encourage them
- Higher interest rates mean more expensive mortgages
- Boris Johnson’s Conservatives plan to create a bigger, busier state
From the November 6th 2021 edition
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