With inflation proving increasingly persistent markets are now pricing in considerable rate hikes ahead for the remainder of the year and into 2023.
Consultancy Capital Economics predict the base rate could reach three percent by next year as well as expecting a five percent fall in house prices as buying activity slows in response to rising costs.
Barclays itself has cited the cost of living crisis as a concern for its customers.
C.S. Venkatakrishnan, Group Chief Executive, said: “We remain focused on the impact higher prices are having on our customers and our small business and corporate clients, all of whom are facing far harder conditions this year as a result of inflation, supply chain issues and higher energy costs.
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