rate5 going to settle down? about a month ago it was around 4%, twice what it was at the beginning of the year and i5 what it was at the beginning of the year and is now looking like 5%. the big question is, could it be even higher than that? lender5 are just looking at getting some pricing they could offer into the market because buying a property, you might buy a property in a month or within six weeks, but then it takes another three months to complete. lender5 are looking for a bit more stability in the market before they come out with a whole new range of offers for borrowers. ., with a whole new range of offers for borrowers. . ., , ., , ., borrowers. and for people who already own borrowers. and for people who already own a borrowers. and for people who already own a property - borrowers. and for people who already own a property who - borrowers. and for people who | already own a property who are paying a mortgage on a property, do you think we are going to see significan
crisis. do you think the situation cri5i5. do you think the situation will stabili5e in the coming days? i will stabilise in the coming days? i would say that the reason mortgage providers are removing product5 would say that the reason mortgage providers are removing products from the market at the minute is largely due to the extreme volatility we had seen since friday 5 announcement. what we saw on friday was £45 billion of tax cuts. that has caused market5 billion of tax cuts. that has caused markets to react, seeing borrowing increasing in the medium term has led to yields ri5ing which increases the costs on bank5 led to yields ri5ing which increases the costs on banks to provide debt stop in particular, looking over the 2-3 stop in particular, looking over the 2 3 year period we are seeing the expectations for the bank of england have now ri5en. we are seeing intere5t have now ri5en. we are seeing interest rates reaching around the 6% mark. thi5 extreme volatility has meant that
the imf said that the government s fiscal plan in late november would give it an opportunity to re evaluate tax measures especially those which benefit high income earners. the uk government proposals would scrap the top rate of income tax and end a cap on bankers bonuses, among other measures. the announcement on friday sparked financial turmoil, as investors dumped the pound. on monday the pound fell to record lows against the dollar. some of the country s biggest lenders have suspended mortgage deals amid the uncertainty. the treasury said: we are focused on growing the economy to raise living standards for everyone. adnan mazarei is a former deputy director at the imf. here s his reaction on the today programme. the imf doesn t make such strong statements about g7 countries. these statements are common with regard to emerging market countries with problematic policies,
this is bbc news. the headlines at 11. one of the world s most important financial institutions, the international monetary fund, criticises the government s tax cuts and calls on ministers to re evaluate their plans. these statements are common with regard to emerging market countries with problematic policies, but not often about g7 countries. this, unlike other fluctuations in the market, is a self inflicted wound. these were the deliberate decisions of the government on friday. the withdrawal of mortgage products hit unprecedented levels overnight, according to analysts. moneyfacts, a financial information service, said that was the biggest overnight drop it has ever recorded. price rises in the shops have hit another record high. figures show annual shop inflation
month, it has almost been an unprecedented shift in borrowing costs. thing5 unprecedented shift in borrowing costs. things can change very fast co5ts. things can change very fast and i think if you have two years left go it is probably best to bide your time, you should be chatting to your time, you should be chatting to your lender with maybe a year to go. thing5 your lender with maybe a year to go. things can change quickly. i doubt people think that rates are going to stay at these levels right the way through 2023, so i think for people with that amount of time to run i would bide your time and plan the next move. d0 would bide your time and plan the next move- would bide your time and plan the next move. , ., ~ ., ., next move. do you think we are going to see more next move. do you think we are going to see more mortgage next move. do you think we are going to see more mortgage deals - next move. do you think we are going to see more mortgage deals coming l to see more mortg