Bailey Rules Out Secret Rate Plan as UK Mortgage Costs Hit G7 High

UK mortgage rates have surged faster since the Iran conflict began than in almost any other major economy, according to Bank of England governor Andrew Bailey.

Bailey testified before a parliamentary committee on Tuesday that residential mortgage rates in the UK had climbed by around 75 basis points, three quarters of a percentage point, since hostilities between the US and Iran started in late February.

This increase is the largest anywhere in the G7, with the possible exception of Japan, Bailey said. He emphasized that every signal from the Bank is conditional on how the economy evolves and that the world remains 'far too uncertain' for unconditional pledges.