IMF warns BoE over keeping UK interest rates high due to fixed-rate mortgages
by Larry Elliott Economics editor from Economics | The Guardian on (#6KXGP)
Risk of declining consumption, house price falls and defaults as tighter policy finally has impact
The high proportion of UK homeowners on fixed-rate mortgages means the Bank of England should be wary of keeping interest rates too high for too long, the International Monetary Fund has warned.
The IMF said many borrowers had been sheltered until now from the impact of higher interest rates and there was a risk of declining consumption, house price falls and increasing defaults as tighter policy finally had an impact.
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