0:00
It looked like affordability was back on
0:01
track to hit levels we last saw in 2021
0:04
at some point later this year. That's
0:06
just collapsed for the time being. So, I
0:07
think the likelihood of a rate cut this
0:09
year, at best you might get one. We
0:11
could get a hike yet, and certainly
0:13
you're seeing in Europe and and traders
0:15
beginning here as well to price in the
0:17
potential for a hike back up to 4% as
0:19
well. And actually, given where rates
0:21
are at the moment, so average rates for
0:23
example on the 2-year, highest it's been
0:25
since April last year, and that's when
0:27
base rates were at 4 and 1/2%. So, we're
0:28
not expecting to reach those highs
0:30
again, but I think the chances of those
0:32
cuts we're seeing are are just
0:33
evaporating pretty quickly. The optimist
0:35
might expect maybe a 25 basis point cut,
0:38
but to be honest, I'd expect it to be
0:39
held until we really see exactly how
0:42
everything plays out in the Middle East,
0:43
which to be honest is beyond my area of
0:44
expertise, I'm afraid.
