"The Bank estimates that around 5.2 million borrowers, more than half of all mortgaged households, are now expected to face higher repayments by 2028, up from 3.9 million before the conflict began."
"The conflict has disrupted global energy supplies, particularly through the Strait of Hormuz, a key route for oil and gas exports. The resulting surge in energy prices is feeding directly into inflation."
"The FPC warned that higher inflation would weigh on growth while increasing borrowing costs, creating a challenging environment for both households and businesses."
The Bank of England warns that tensions in the Middle East may push the UK towards a financial crisis. Rising energy costs and market volatility expose economic vulnerabilities. The Iran conflict has caused a substantial shock to global markets, tightening financial conditions and increasing inflation. Over 5.2 million borrowers are expected to face higher mortgage repayments by 2028. More than 1,500 mortgage products have been withdrawn from the market. Higher inflation will weigh on growth and increase borrowing costs, creating challenges for households and businesses.
Read at Business Matters
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