Mortgages, bills and jobs: Five takeaways from the Bank of England meeting

The Bank of England signalled that UK markets could face tighter policy and higher consumer costs as the Middle East conflict boosts energy risks. In its central scenario the BoE said one or two rate rises are possible later this year; in a severe scenario it could deliver as many as six hikes taking the base rate to 5.5% if oil stays above $120/bbl and inflation tops 6%. The Bank expects average monthly mortgage payments for those moving onto new deals to rise by about £80 over the next three years, energy bills to increase from £1,641 toward ~£1,900 in July, and food inflation to reach about 4.6% in September. It warned lower-income households will be hit hardest and unemployment may rise.