Bank of England Posits 35% House Price Decline in Stress Test

  • Recession lasts through June 2017 as unemployment jumps
  • Inflation soars to 11 percent in second quarter of 2018

Aerial Views Of London

Photographer: Matthew Lloyd/Bloomberg

The Bank of England set out the scenario it will use to assess the resilience of the U.K. banking system in the coming years, including a 35 percent decline in house prices between the end of this year and the second quarter of 2018.

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