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February rate hike now 73% likely after hot inflation data stuns markets
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Dynamic Business
Markets jumped from 56% to 73% odds of a February rate hike within hours of today’s CPI release.
Markets immediately increased the probability of a February rate hike from 56% to 73%, effectively ending one of the shallowest easing cycles in more than three decades.
Why this matters: The reversal carries immediate implications for property markets and mortgage holders, with a 0.25% rate increase now expected next week.
“Before today’s inflation data, the market had priced in a 56% chance of a rate hike at February’s meeting,” said Oliver Hume Chief Economist Matt Bell.
Property sentiment shiftsThe implications for property markets are immediate and significant.