Good morning, and welcome to our rolling coverage of the world economy, the financial markets, the eurozone and business.
British homeowners are being warned that years of ultra-low mortgage costs are coming to an end, and are now facing the biggest rise in costs since the financial crisis.
Property owners could expect the amount of interest they have to pay to jump by 13% in 2023, according to forecasts from the government’s independent forecasting unit suggests.
Politicians and analysts seized on a table “buried” in a report published by the Office for Budget Responsibility (OBR) alongside the budget, which stated that mortgage interest payments were set for their biggest rise since at least 2008.
Lenders have been pulling their cheapest mortgage deals for some time already, in expectation of the Bank of England raising interest rates from historic lows.
Financial markets are already pricing in a rate rise when the Bank of England meets next week, which could lift the base rate to 0.25%, followed by a 0.25-point increase in December. With two more 0.25% hikes forecast for next year, that could take the base rate to 1% by the end of 2022.
My colleagues Rupert Jones and Philip Inman have got the full story on mortgage cost predictions here:
Looking ahead to later this morning, there is a clutch of third quarter GDP data expected from eurozone economies, as well as inflation numbers from the bloc for October. The inflation statistics will be especially closed watched, after the European Central Bank insisted yesterday that higher inflation was only temporary and pushed back against market bets that rates will have to rise early next year.
Meanwhile in other news overnight, debt-laden Chinese real estate developer Evergrande has reportedly made an interest payment on an offshore bond ahead of the deadline for a grace period. This means it has narrowly averted a catastrophic default for the second time in a week, according to Reuters.
Evergrande is grappling with some $300bn (£218bn) in liabilities, which has stoked concerns about the impact on the world’s second-largest economy if it wasn’t able to meet its repayments.
You can read the full story here:
09.00 BST Germany flash Q3 GDP
09.00 BST Italy flash Q3 GDP
09.30 BST Portugal flash Q3 GDP
10.00 BST Eurozone flash Q3 GDP
10.00 BST Eurozone October inflation
13.30 BST US September core PCE price index