The Daily Chase: Markets point to negative open; First-time homebuyers concerned with affordability

​North American equity markets appear poised to open in negative territory, extending yesterday’s losses as attention remains squarely on the potential for higher rates and slowing economic growth.

BANK OF ENGLAND UNLEASHES SUPERSIZED HIKE

Speaking of that higher rates picture, the Bank of England surprised markets with a supersized rate increase this morning – going a full half a per cent to bring the benchmark rate to five per cent – underscoring that this fight to quell inflation is a global one, rather than localized on this side of the pond. It wasn’t unanimous – the nine member committee voted 7-2 to go the full 50 basis points – but it’s still something of a surprise, as markets had only priced in a 40 per cent chance of an increase of this magnitude. And the BoE says it may not be finished yet, warning that if price pressures persist (you’ll remember we were told inflation held firm at 8.7 per cent just yesterday), there could be more increases in the offing.

FIRST-TIME HOMEBUYERS FRET OVER AFFORDABILITY