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UK faces higher mortgage rates and energy bills as costs rise
The article ties the pressure on UK consumers to sustained oil prices above $100 and an energy price cap review by Ofgem in January.
Guardian Economics reports that rising energy bills, higher borrowing costs, and inflation are tightening fiscal conditions for UK policymakers as the economy shows little sign of “stability.”
The outlet says the risk is that as the US-Israeli war on Iran persists, UK consumers may face higher mortgage rates and energy bills, even while the government confronts surging borrowing costs.
Guardian Economics points to a bleak run-up for the upcoming energy price cap decision, noting the three-month period of tracking energy price moves that Ofgem will use in January.
According to the article, based on energy futures pricing, the cost of a barrel of crude has been above $100 for much of that review period.
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