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

the bank of england laid out five ways the middle east conflict could hit household finances, with rate rises, higher mortgage bills, and more expensive energy all on the table. the bank's rate-setting committee considered a scenario where oil hits $120 a barrel and inflation tops 6% early next year, triggering up to six rate rises that would take the base rate to 5.5%. over the next three years, average monthly mortgage payments for the 87% of homeowners on fixed-rate deals are expected to rise by roughly £80 when they remortgage. about 53% of mortgage holders will see payments go up, though 25% who fixed at higher rates should see them fall. energy regulator ofgem's price cap is expected to rise from £1,641 to "close to £1,900" in july and stay there. food price inflation could hit 4.6% in september. the bank warned unemployment could rise further as households save more and spend less, weakening demand and reducing hiring. lower-income households are in a worse position than in 2022, with a greater proportion now holding less than two weeks of income in savings.