How the UK’s economic growth will be impacted by rising interest rates

Just as one economic obstacle – last year’s surge in energy prices – starts to recede, another emerges: tough interest rate rises from the Bank of England. The slow pace at which inflation has fallen back means interest rates may climb even higher, making it challenging for mortgage holders and other borrowers. But the economic outlook is also brightening in some respects. Energy bills are heading down, the shrinkage in the workforce which occurred during the pandemic has reversed and the UK is benefiting from a global improvement in supply chains.

The latest EY ITEM Club forecast explores all these factors and consider whether what some have termed a ‘mortgage crisis’ inevitably means recession or if the UK economy has the resilience to handle these challenges.

Register to watch the on-demand webcast where our speakers provide a comprehensive overview of the EY ITEM Club Summer Forecast 2023 and explore the challenges and opportunities linked to the UK’s economic prospects. 

Topics discussed include:

• The EY ITEM Club’s summer forecast and implications for the UK’s economic recovery.
• An exploration of questions around what some have termed a ‘mortgage crisis’ and if it inevitably means a recession or if the UK economy has the resilience to handle these challenges.
• The risks and opportunities linked to the UK’s economic prospects.

For more information, read the full forecast here.