Live: Race against inflation

by | Jun 29, 2023 | Forex Analysis

Inflation

In today’s live webinar, I spoke about inflation and how every major country is almost at its peak with interest rate hikes. Live: Race against inflation.

Inflation

The main concern is how long will they hold inflation rates at this rate and also who would be the first to start cutting rates. I shared with you at the start the interest rates of different economies. The Kiwi has the highest rates at the moment at 5.5%, which makes it attractive to invest as savers are gaining interest on their deposits. At the same time it is also not a good thing to have such high interest rates as borrowing money becomes very expensive. We can see that with the loans and mortgage rates at the moment. People’s monthly payment has doubled since last year and is continuing to rise with the payments slicing through their savings. This applies to countries with high-interest rates. Race against inflation.

According to research by the think tank, NIESR estimated that the latest rate increase would see 1.2 million U.K. households (4% of households nationwide) run out of savings by the end of the year.

Gov Bailey is under fire and criticized by major politicians for being aggressive with the rates as it’s hurting UK households with their payments. U.K. Finance Minister Jeremy Hunt said three measures had been agreed upon with the banks, mortgage lenders, and the Financial Conduct Authority, including a temporary change to mortgage terms and a promise that consumers’ credit scores would not be affected by discussions with their lender. He also said that for those at risk of losing their home, lenders agreed to a 12-month grace period before there’s a repossession without consent. Race against inflation

Mortgage catastrophe brews in Britain

Here is also an article showing some interesting graphs on the mortgage rates and how new mortgages are declining as people can’t afford to buy houses. Interest rates could peak at 6% this year causing more pain for mortgage payers.

Andrew Bailey blames brits demanding pay rises

Here are the current interest rates for different countries.

Interest rates and inflation

Alf the ex-bond trader also predicts the BOE could put UK into a recession this year with the rate hikes.

You can follow Alf on Twitter: https://twitter.com/MacroAlf

Powell also gave some clues that they are already at peak levels with rate hikes and might have a couple more hikes this year, with most of the job being done.

650x60 100 Free training course 4

More rate hikes are likely this year to fight still-high inflation

Turkey last week surprised everyone by raising their interest back up to 15% from 8.5 % since March 2021 as inflation picked up again this year.

Turkey’s central bank hikes interest rate to 15%

We can clearly see that all the major country banks still have a lot of work to do to bring down inflation in their economies. They can’t hold on to such high rates for too long as it’s not sustainable and put a lot of pressure on people. They could also end up losing their houses if they can’t keep up with the payments. The country that is able to prove that inflation is slowing down and gets back to its 2-3 % target first would be likely to be able to cut rates first. The NZD could be the first as they were the ones to react quickly. Followed by the FED who’s CPI readings have been coming lower month on month. Race against inflation.

VTC software

I was also asked by a member to show how to install the VTC and how to use it. I have put in some links below from our previous posts where we have shown you how to do it. I also gave little demo at the end showing how I have set up my own VTC.

(Only members have access to links below)

Andi: How to Instal & Set Up The Visual Trading Console

Improve Your Results by Semi-Automating Your Trades?

You can watch the live webinar below:

Kind regards,

Ashley

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