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9 Oct 2013
Flash: Sterling; UK housing, escape velocity? – Rabobank
FXstreet.com (London) - Jane Foley, senior currency strategist said ‘Today brings the launch of the second phase of the UK government’s Help to Buy scheme”.
Key Quotes:
“Banks that commit to the plan will sell mortgages on homes of up the GBP600K in value with deposits of as low a 5%”.
“For sterling the initial support for growth is a positive factor”.
“If, as in Canada, the rise in the household debt ratio brings forward the risk of a rate hike, there may also be medium-term support from this news”.
“However, into the next economic slowdown, any signs that subprime borrowing is becoming unstuck would clearly be nasty”.
Key Quotes:
“Banks that commit to the plan will sell mortgages on homes of up the GBP600K in value with deposits of as low a 5%”.
“For sterling the initial support for growth is a positive factor”.
“If, as in Canada, the rise in the household debt ratio brings forward the risk of a rate hike, there may also be medium-term support from this news”.
“However, into the next economic slowdown, any signs that subprime borrowing is becoming unstuck would clearly be nasty”.