Rising UK mortgage costs for homeowners; Markets Await Eurozone Inflation – Live Business | a job

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Good morning, and welcome to our renewed coverage of the global economy, financial markets, the eurozone and business.

British homeowners have been warned that years of falling mortgage costs are coming to an end and they are now facing the biggest rise in costs since the financial crisis.

Property owners can expect the amount of interest they have to pay to jump 13% in 2023, according to forecasts from the government’s independent forecasting unit.

Politicians and analysts at the “buried” table seized a report published by the Office of Budget Responsibility (OBR) alongside the budget, which stated that mortgage interest payments are set for their biggest rise since at least 2008.

Lenders have been withdrawing the cheapest mortgage deals for some time already, waiting for the Bank of England to raise interest rates from historic lows.

Financial markets are already pricing in a rate hike when the Bank of England meets next week, which could raise the key rate to 0.25%, followed by a 0.25 point hike in December. With two additional 0.25% increases expected for next year, that base rate could rise to 1% by the end of 2022.

My colleagues Robert Jones and Philip Inman got the full story of their mortgage cost predictions here:

Looking at later this morning, there is a batch of third-quarter GDP data expected from Eurozone economies, as well as inflation numbers from the bloc for October. Inflation statistics will be closed off privately, after the European Central Bank insisted yesterday that high inflation was only temporary and pushed back against market bets that rates should rise early next year.

Meanwhile, in other news overnight, debt-laden Chinese property developer Evergrande was reported to have paid interest on offshore bonds before the grace period deadline. That means it narrowly escaped avoiding a catastrophic stumble for the second time in a week, according to Reuters.

Evergrande is grappling with liabilities of around $300bn (£218bn), which has raised concerns about the impact on the world’s second-largest economy if it is unable to make its payments.

You can read the full story here:

schedule of work:

09.00 GMT Germany’s Q3 flash of GDP 09.00 GMT Italy Q3 GDP 09.30 GMT Portugal Q3 Portugal’s flash of GDP 10.00 GMT Eurozone indicator Q3 GDP Q3 of total GDP 10.00 GMT in the Eurozone in October at 13.30 GMT in the US Core PCE Price Index for September in the US

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