‘Outrageous’ predictions inform investor stress tests

A crash in UK housing prices and Mario Draghi leaving the European Central Bank are among 10 “outrageous” predictions for 2015, according to Saxo Bank, which forecast the oil-price slump in a similar list last year.

An increase in interest rates by the Bank of England could drive down UK housing prices by as much as 25%, Saxo Bank said in a note listing unlikely 2015 events that could have significant consequences for global markets should they occur.

Bundesbank president Jens Weidmann could become the next ECB chief to help bring Germany on board with a quantitative-easing programme, as Draghi would leave to be Italy’s head of state, Saxo Bank speculated.