Daily Market Report – 23/03/2015

GBP
It appears UK borrowers are more vulnerable to an interest rate rise than
ever before after new figures showed unsecured household borrowing hit an
all-time high last year. Unsecured debt rose nine per cent in 2014 to a
record £239bn, or £9,000 per household, driven by an increase in student loans
and credit card borrowing.

The rate of growth is the fastest in a decade, and represents an additional

GBP
It appears UK borrowers are more vulnerable to an interest rate rise than
ever before after new figures showed unsecured household borrowing hit an
all-time high last year. Unsecured debt rose nine per cent in 2014 to a
record £239bn, or £9,000 per household, driven by an increase in student loans
and credit card borrowing.

The rate of growth is the fastest in a decade, and represents an additional
£19.6bn borrowed last year.  With borrowing set to reach £10,000 per
household by 2016, Brits are even more exposed to a hike in the Bank of
England’s base rate, currently at a record 0.5 per cent low.

Also a new report from think tank “Open Europe” looked at the
potential for the UK to leave the European Union indicating Britain’s economy
could take a hit of up to 2.2 per cent of GDP or £56bn by 2030. The report
argues that in the worst case scenario, the negative effects of a
British exit would not wholly be offset by a new free trade agreement
with the EU.

USD
The Dollar weakened on Friday after the US interest hike again dominated the headlines,
this time Atlanta Federal Reserve President Dennis Lockhart played down the
certainty of a June rate hike. Lockhart indicated it could be during
June, July or September policy meetings, barring a significant downturn in the
economy. The lower economic forecasts issued by the Fed earlier this week
reflect mostly “transient” changes that do not fundamentally change
its outlook for continued U.S. growth Lockhart told reporters.

Key
Announcements
EUR – 15:00: ECB President Mario Draghi
makes a speech

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