![]() ![]() ![]() Mortgage Market: The uptick in interest rates roiled Britain’s mortgage market, leaving many homeowners calculating their potential future mortgage payments with alarm.Ī troubled real estate market has added to the economic instability in China.Economists say it was necessary - but also worry about the precedent. A Troubling Precedent?: The Bank of England stepped in to save a critical market.22, the Bank of England raised its key rate by another half a percentage point, to 2.25 percent, as it tries to keep high inflation from becoming embedded in the nation’s economy. Inflation Slows Slightly: Consumer prices are still rising at about the fastest pace in 40 years, despite a small drop to 9.9 percent in August.Other regions of the world are also being squeezed, although some of the causes - and prospects - differ. “We haven’t faced anything like this since the 1970s, and it’s not ending soon.” The risk of sinking incomes, growing inequality and rising social tensions could lead “not only to a fractured society but a fractured world,” said Ian Goldin, a professor of globalization and development at Oxford University. Plans for factory closings, rolling blackouts and rationing are being drawn up in case of severe shortages this winter. The eightfold increase in natural gas prices since the war began presents a historic threat to Europe’s industrial might, living standards, and social peace and cohesion. Several countries, including Germany, the region’s largest economy, built up a decades-long dependence on Russian energy. They will discuss strategies that could include price caps and mandatory cuts in energy usage. On Friday, ministers of the European Union are set to meet to debate a plan to intervene in the energy markets in a bid to tame prices. “It’s a really dark downside scenario,” Christine Lagarde, the president of the E.C.B., said at a news conference. At the same time, it acknowledged the severe impact of the energy crisis and issued a dour forecast for growth. The European Central Bank, which oversees economic policy for the 19 nations that use the euro, took an aggressive step to combat inflation, matching its biggest ever rate increase of three-quarters of a percentage point. Just how steep a challenge was sharply underlined on Thursday. Real incomes and living standards are falling, he added. While growth is slowing worldwide, “in Europe it’s altogether more serious because it’s driven by a more fundamental deterioration,” said Neil Shearing, group chief economist at Capital Economics. The fallout from the war is menacing the continent with what some fear could become its most challenging economic and financial crisis in decades. #WAVES COMPLETE 9 PRICE SERIES#Russia’s invasion of Ukraine and the continuing effects of the pandemic have hobbled countries around the globe, but the relentless series of crises has hit Europe the hardest, causing the steepest jump in energy prices, some of the highest inflation rates and the biggest risk of recession. ![]()
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