Former Bank of England governor Mark Carney has warned that governments will be paying higher rates of interest for their debt for the foreseeable future, and that mortgage holders should adjust to this new situation.

Carney told ITV’s Robert Peston:

If you have still a few years of low interest rates on your mortgage, if you fixed just at the right time as it turned out, recognise that there will be ann adjustment over the medium term.

It’s a question of degree but the direction is very clear.

The turbulence in the mortgage market has continued, with Nationwide lifting its fixed-term mortgage rates from tomorrow….

…and average rates across the market increasing again.

In the eurozone, the European Central Bank has lifted its key interest rates by a quarter of one percent.

ECB raises interest rates by quarter of a point to tame inflationRead more

The ECB warned that inflation is projected to remain too high for too long, as it lifted its forecasts for price rises over the next few years.

ECB president Christine Lagarde indicated that eurozone interest rates will be lifted in July too, saying:

“Are we done? Have we finished the journey? No. We’re not at our destination.

Do we still have ground to cover? Yes, we still have ground to cover.

And in other news:

Rolls-Royce boss unable to see secret UK documents on its submarines businessRead more
Tony Blair’s bet on gambling Britain has spiralled out of controlRead more
Crispin Odey’s hedge fund disbanding after sexual misconduct allegations Read more
National Grid in talks with Drax to revive coal-fired unitsRead more
WE Soda boss says New York would be ‘credible alternative’ for flotationRead more
More women on UK boards but number of female bosses flatlinesRead more
UK regulator to ban ads for ‘misleading’ broadband and mobile dealsRead more

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— James Picerno (@jpicerno) June 15, 2023