The UK is on the brink of voting in the June 23^rd referendum in what Chancellor George Osborne is referring to as a possible moment the cost to buy a home could rise. He has spoken with words of caution in regard to mortgage rates increasing if Britain votes to leave the European Union. Osborne sees inflation increasing with an exit from the EU and thus a corresponding move from the MPC to raise interest rates in order to stay in line with the overall purpose of the committee.

When recently asked about an increase he replied, saying: “The short answer is yes. I think that is likely, but I’m not in charge of interest rates.”

He referred to the minutes of the latest MPC meeting in which the mandate of controlling inflation was discussed and how that method would be exercised in the event sterling began to fall in value and inflation started to rise.

He continued his comments, saying: “You would have rising prices and a Bank of England with an inflation target committed to respond to that.”

Some have accused Osborne of fear mongering and trying to influence the vote through words of intimidation. His comments have hit the public ear on the first day of the official campaign leading to the historic vote.

There is little support of Osborne’s views on the path interest rates would take next. Many economists believe a hike in interest rates is quite unlikely. This belief is based on the Bank of England wanting to maintain a high level of confidence from UK residents.

He added: “You can make your arguments about whether Britain should leave, but don’t pretend that we would be economically better off. We would pay a heavy economic price for leaving.”