Loan repayments
The changes compared to the central Covid scenario used for the forecast presented in last year publication are mainly around medium term projections of the RPI and average earnings. The RPI and earnings projections converge to the pre-Covid figures in 2025-2026. The Bank of England base rate for 2025-26 and beyond is assumed to converge to the projected pre-Covid value by financial year 2040-41. Continue reading “The student loan repayments forecast makes use of the OBR’s Economic and Fiscal Outlook macroeconomic projections”