Bank of England could be forced to hike interest rates to 7%, economists warn

The UK base rate could be raised as high as 7% to curb stubbornly high inflation, according to JP Morgan, which said the risks of a hard landing for the economy are also rising.

The U.S. investment bank expects rates to peak at 5.75% by November, but cautions that they could go higher “under some scenarios,” hitting up to 7%.

The analysis from JP Morgan Economist Allan Monks comes just two weeks since the base rate was hiked by 0.5% to 5% to bring inflation under control, leaving homebuyers struggling to meet rising loan repayments.

The Organisation for Economic Co-operation and Development has said the UK is the only G7 nation where inflation is rising.

JP Morgan warned that surging borrowing costs could hit business confidence and drive up unemployment.

The National Institute of Economic and Social Research estimated last month that 1.2 million households would become insolvent this year as a result of higher mortgage payments.

“High inflation could prompt a broader rise in inflation expectations as psychology shifts and a sustained wage-price spiral sets in,” Monks wrote in a note to clients. “Even if longer-term measures remain anchored, elevated short-term expectations could also create a more persistent problem.”

“This could force the BOE into raising rates above our forecast in order to ensure real rates turn sufficiently positive to short circuit this dynamic,” he added.

In an interview with the BBC yesterday, BOE governor Andrew Bailey acknowledged that people were “having to make very difficult choices” when it comes to their financial decisions.

“If we don’t get inflation down, if it keeps going on, it gets worse, it really gets worse, and we’ll have to put interest rates up more,” he said.



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  1. Andy Halstead

    ‘forced’……… by who?

    1. Robert_May

      Inflation and the need to profit from all the Covid bounce back loans

      1. AgentBen

        I was fortunate to not have to take one, but I was under the impression that they were fixed at 2.5% and non-extendable beyond the agreed period?

    2. Delphine12

      That is a good question ……easily answered. The same ruling families who govern from their three sovereign states…….the Vatican, the Bank of International Settlements in Basel and of course the one square mile of the City of London which was in the past the capital of what was our sovereign nation (fast being dismantled and destroyed) and now the centre of modern slavery in what was in the past the most truly liberal and free thinking nation on earth. Now crumbling ,as the masses accept the latest drive of communism.

      Swot up on the three most evil unelected groups currently running the globe

      The UN

      The WEF

      The WHO

      The controlling families have set up these brutal groups to push humans into a digital slavery which will be achieved once they eradicate paper money and the fiscal money system and replace with their “one world government” central bank digital currency ( currently in planning at the BIS which controls from their sovereign state all other central banks ) which will be aligned with each useless eaters ( how the elites refer to us) carbon credit allowance. Bingo digital servitude and slavery.

      If there is one phrase which makes you understand what has been happening since they inflicted fear on the masses three years ago and the resultant “inflation” and high interest rates currently starting to take property away from people it is this from the WEF

      “By 2030 humans will own nothing but be happy”. The UN and before them the Club of Rome hate ordinary people owning property…….and they intend to take it from us ……..herd us into smart city 15 minute living in rented cardboard boxes under total 5g surveillance .

      Stand strong . Resist fear when they introduce ” the next pandemic “. The only pandemic this last time was deadly experimental untested mrna injections which have killed anmd maimed more humans than all other genuine vaccinations in previous history. Check out the ” government ” yellow card system and the US vaers system. Refuse fear mongering masks, do not allow yourself to be ” locked down “, use cash as much as possible , do not trust any thing from “government” ( they are bought and disreputable puppets ) health services , education establishments or the dreaded councils .

      Swot up on the 17 ” sustainable goals ” set in place by the UN and then look at UK Column News and listen to an interview between Brian Gerrish and Sandi Adams regarding the true translation and meaning for us of these 17 goals ie no 1 social equity has nothing to do with bringing all people out of poverty ……’s drive is to make all useless eaters equally poor……….

      So much to learn and know about right now . Swot up to defend the human freedom of yourselves , your loved ones and then in consequence all of us .

      1. fotw2614

        Well, I am totally with you on all of that, but it has left me smiling wondering whether this is the right forum! Hope you get lots more “likes”!

      2. Anonymous Coward

        Might I recommend that you read “The Owner” trilogy by Neal Asher – it’s sci-fi but remarkable for it’s prediction of the near future along the lines of your comment.

      3. jan-byers

        The Vatican

        LOL My hubby is a surgeon I can assure you the virus saves 1000’s of lives

        I am thi9nking he knows more about it than you do

        Another insane conspiracy nutter

  2. Typhoon

    If idiots stop spouting doom and gloom so much, the mood of the country would be more positive. If you take sample of the “Armageddon headlines” of disaster coming over theist 10 years, none has come to fruition. The more the mood becomes “heavy’, the harder it is to get the country to dig deep and do the things necessary to grow and sustain the economy. But of course the press (P Eye included) love the big, scary, negative headlines. But they are  fuelling national mood depression.

    What has happened to “Houston we have a problem and  getting our sleeves rolled up and putting our back into solving the problem”?


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