Central bank raises concerns over newly elected governments as more than 80 countries go to polls this year
Officials are concerned about the kind of policies that newly elected governments may enforce in large economies, including the US, where Donald Trump is vying for another term as president in the run-up to the election in November.
That includes the 400,000 households whose monthly mortgage payments are expected to soar by 50% as they roll off fixed rates between now and the end of 2026. “Although the sector has been resilient so far, it is facing challenges in the higher rate environment,” the FPC said, noting this was becoming apparent as firms were forced to refinance their debt at much higher prices.
The first – a “supply-shock scenario” echoing the ripple effects of Russia’s invasion of Ukraine – will cause inflation and interest rates to soar to 12% and 9%, respectively, as geopolitical tensions disrupt supply chains and cause the price of global commodities to soar.
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