The ECB joins the rate rise club, with a 50 basis point hike – which was bigger than expected by the markets. They expect inflation to hang around, and they expect further normalization ahead.
So this marks the end of the negative interest rate experiment, other than in Japan, Denmark and Sweden. Banks will see profit uplifts as a result.
But the result will be higher rates around the world – until something breaks…
Go to the Walk The World Universe at https://walktheworld.com.au/
– Off topic: Recently I came across a VERY interesting video with an interesting presentation regarding the housing market in New Zealand.
https://www.youtube.com/watch?v=EKGUwCb5GuA
The man in the presentation points out the reasons why the housing market in NZ is “unaffordable”. Joe Wilkes has driven around in Auckland and has pointed out that there is no housing shortage but that in NZ the wrong type of houses are being build. Too many expensive houses. This presentation points to another mismatch in the houses being build. Too many houses are meant for a family / household of four persons where there are too little houses being build for households of 2, 3 or even 5 persons.
– Again, I can highly recommend to watch the video.
– Perhaps you want to invite him to a guest in one of your videos ?