interest rates

Krishan Shah, Phil Bunn and Marko Melolinna An important way in which monetary policy impacts the economy is through its effects on the capital expenditure of firms. When policy rates are raised (and as long as risk-premia remain unchanged) firms’ cost of capital increases. A higher cost of capital should lead firms to increase their … Continue reading High hurdles: evidence on corporate investment hurdle rates in the UK →

Nuri Khayal and Jonathan Loke Many households in the UK have seen their mortgage payments go up since mortgage rates started to increase in 2022. In the current environment of higher rates, the question of how much a household can comfortably spend on their mortgage payments before getting into financial distress is particularly relevant. This … Continue reading The link between mortgage debt servicing burdens and arrears: is there a critical threshold? →

Laura Achiro and Neha Bora Central banks in most advanced economies have tightened monetary policy by raising interest rates. Tighter financing conditions may make it harder for some businesses to refinance their debt or could mean they face less favourable terms when they do. This blog explores the extent to which bond maturities could crystallise … Continue reading How resilient are UK corporate bond issuers to refinancing risks? →

The UnOz’s Person of the Year award is one of the most anticipated events of the year, with defamation lawyers everywhere especially keen to see the list. 2023 was a year like no other. For Australia it felt like a... Read More ›

The Reserve Bank of Australia has taken a break from kicking mortgage holders in the groin to call on the Nation’s defamation lawyers to reign in their spending as inflation is on the rise. ”These millionaire defamation lawyers need to... Read More ›

Fergus Cumming and Danny Walker Bank Rate has risen by more than 5 percentage points in the UK over the past couple of years. This has led to much higher mortgage rates for many people. In this post we analyse another potential source of pressure on mortgagors: the potential for falls in house prices to … Continue reading Why lower house prices could lead to higher mortgage rates →

The Nation’s banks have called on the Albanese Government to relax the laws around selling human organs in order to allow people to afford the latest interest rate rise. ”The Government needs to do all it can to allow us... Read More ›

Opposition leader (for now) Peter Dutton has called upon the Albanese Government to appoint former Minister for everything, everywhere, all at once, Scott Morrison, as Governor of the Reserve Bank. ”I don’t want to see some qualified public servant or... Read More ›

Opposition leader (for now) Peter Dutton has demanded that Indigenous Australians apologise to the Nation’s mortgage holders over the rise in interest rates seen over the last year. ”Before we started talking about the Voice interest rates were low and... Read More ›