Tuesday 7th November 2017
When will the river of greater fools run dry?
So, the Bank of England raised the base rate from 0.25% to 0.5% last week – the first rise in borrowing costs for a decade.
It’s a small hike but the average mortgage will go up by £22 per month adding to pressure on households….
Typically, banks raised mortgage rates immediately upon the Bank of England announcement but were not so quick to pass the increased rate on to savers….
The rise made a big noise in the papers. But this is only a very small step back in the direction of normality….
Granite-chinned markets barely took a step backwards. It will take more than last week’s rather puny left hook to wobble them….
I think of last week’s rate rise as though it were the pilot episode of a new TV series that will command more of our attention further down the road. There is more to come. And that is when things will get interesting….
- Bitcoin – on a tear….
Meanwhile, like everybody else, I’m unable to look away from the bitcoin saga….
Records are being broken day on day. Bitcoin punched through $5000 last month.… Click here to read more