BoE outlook: September cut in doubt, as consumers squeezed by rising prices
Paul Heywood, chief data & analytics officer at Equifax UK, comments ahead of the Bank of England’s interest rate decision on 18 September: “Following last month’s closely divided interest rate vote, hopes of another cut this month are in doubt with Bank of England policymakers once again under pressure to curb rising inflation.
“The rising cost of food staples has pushed inflation higher, putting a squeeze on consumers already feeling the pinch at a time when outstanding UK credit card debt sits in excess of £74.5bn – 8.5% above pre-pandemic levels. Mortgage borrowers in particular are likely to be disappointed by the slower pace of rate cuts as a result.
“Equifax will continue to work alongside its lending partners to help them understand borrower creditworthiness and affordability whilst also helping consumers understand their financial health position.”