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Tuesday, August 13, 2013

Interest rates may rise soon

Landlords who may think that interest rates could stay at their current low level for another 3 years may be in for a bit of a shock according to the latest article in the Telegraph. 

We highlighted last week in our piece on financing your property investments that the actions from Mark Carney of linking interest rates to the unemployment rate may bring forward investment and stimulate the economy.  The result being that economic activity zips up and unemployment rates fall much faster than expected and interest rates start to rise. It's all about 'the economy stupid' and the state of the economy is all about confidence once our massive debt overhang has cleared.  If you get those things right, just watch the economy go with interest rates having to rise sharply.

Read the article in the Telegraph here.

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