It was announced today that the M3 measurement of the Eurozone money supply increased by more than was expected and that the German jobless total had decreased by more than expected.
Many commentators had expected that the ECB base rates would rise from the current 4% to 4.5% by the end of 2007. These two sets of data now make this much more likely and increases the possibility of interest rates rising to 4.75 by the end of 2007 and to 5% in 2008.
These rises are likely to affect affordability for many people and are going to make it difficult for people who already have very large loans.
Many commentators had expected that the ECB base rates would rise from the current 4% to 4.5% by the end of 2007. These two sets of data now make this much more likely and increases the possibility of interest rates rising to 4.75 by the end of 2007 and to 5% in 2008.
These rises are likely to affect affordability for many people and are going to make it difficult for people who already have very large loans.