E&Y predicts fraud increase after rate rise

Link: Bank raises interest rate to 4%

Yesterday (5 February), the Bank of England raised rates from 3.75% to 4%. Further rises are expected to follow throughout the year.

As a result, E&Y warned bosses that the rise will lead to more cash-strapped employees trying to rip off their employers.

The pressure will increase with each rise in rates, it said.

Personal indebtedness stands at £934bn in the UK.

This is expected to grow to over £1,000bn by the summer.

The rate increase will add an average of more than £200 on an individual’s annual repayments.

‘With interest rates now on the up, more people will become trapped in a spiral of debt and could be tempted to find an easy way out’ said E&Y’s John Smart.

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