Interest Rates Cut?

The policy sensitive short end of the yield curve has dropped suggesting an imminent interest rates cut (implied 80% chance by year end), and backed up by Mark Carney this week. This is likely to move to zero, but with a chance of following the European central banks into negative territory. Good news for borrowers, including those looking to enter the housing market, as 2-year fixed mortgages fall below 1.0% – the lowest since records began.