In June, the Bank of England increased interest rates for the 13th time in a row.
The Bank of England could increase interest rates to 7% as it tries to tame inflation, according to JP Morgan, which said the risks of a hard landing for the economy are also rising.
The analysis from JP Morgan Economist Allan Monks comes as U.K. homeowners face a significant jump in borrowing costs as they're usually linked to the central bank's main interest rate.
In June, the central bank increased interest rates for the 13th time in a row, by 50 basis points — more than many expected — to 5%.
He added: "This alone raises the risks of a hard landing next year, but we recognise that the policy rate required to control inflation is proving to be higher than most had expected."
Persons:
JP Morgan, Morgan, Allan Monks, BOE, Monks
Organizations:
Bank of England
Locations:
U.S