However, the impending decline will put an end to this. The bank’s latest forecasts include a warning that unemployment could rise to 8% by 2025, the worst level since the end of the banking crisis. Even if this worst-case scenario is avoided, the Bank’s main forecast is for unemployment to rise from 3.9% to 5.5% in three years. That would mean another 450,000 people out of work.
Interest rates
The Monetary Policy Committee (MPC) raised the bank’s interest rate – the reference price of the loan – to 1 percent, its highest value since 2009.
This is the fourth time in a row that the commission has set interest rates and will put additional pressure on homeowners with tracking mortgages, as well as further lifting barriers for first-time buyers who are already facing record asking prices.
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