HONG KONG, June 27/Xinhua-PRNewswire/ --
Bank lending to ease further in Singapore
Data on bank lending in Singapore is due out on Monday 30th. This should confirm that the pace of lending growth has continued to slacken as a result of greater uncertainty regarding the broader economic outlook.
Rising inflationary pressures are forcing the authorities to adopt a stronger Singapore dollar (its main monetary policy tool) at a time when the global climate is weakening.
July ECB move will not deal knock out blow to house prices
The ECB will announce its next move on interest rates on Thursday 3rd. During the press conference that accompanies the June policy-making meeting, President Trichet said that "...we will, in our next meeting, not exclude the possibility of increasing rates by a small amount." The likely impact of an ECB move on the euro area’s national housing markets is largely dependant, other things being equal, on how exposed mortgage funding is to the short end of the yield curve.
More bad news in store for UK real estate sector
A raft of property related data is due for release in the UK over the coming week. On Monday 30th, the May mortgage approvals number is announced by the Bank of England. The June CIPS Construction Survey and Q1 Mortgage Equity Withdrawal data are due on Wednesday 2nd. Finally on Thursday 3rd, the Q2 Credit Conditions Survey is published by the BOE. It is hard to believe that this will contain anything other than more bad news with regard to lending standards for real estate.
No change in Aussie rates
Tuesday July 1st brings the latest interest rate decision by the Reserve Bank of Australia. The bank has lifted rates by 1% since last August, the latest move coming in March. RICS believes that the RBA will remain on hold for the time being, which would surely be a relief to homeowners.
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