An interest rate rise may put thousands at risk of mental health problems

Abstract

First paragraph: After nine years of interest rates below 1%, it seems imminent that the Bank of England will announce a rise before long. As pay growth picks up and inflation hits its 2% target, a rate rise would – it is argued – ward off potential risks of inflation in the medium term. But another factor to bear in mind is that a rate rise could also have serious repercussions for people’s mental health. A large portion of the UK population have high, possibly unsustainable, levels of debt and a higher interest rate is likely to increase the burden of repaying some of that debt. It will therefore likely increase their levels of mental distress.