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The implications of higher rates for the housing market

Investors have revised up how far they expect the Bank of England to raise interest rates as they continue to digest the tax cuts announced on Friday. This Update examines what the impact on the housing market would be, and whether that could prevent policymakers from following through.

Given our view that the housing market will become a significant factor in the Bank of England’s policy decisions next year, we are also sending this Update to clients of our UK Economics service.

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