Few would argue low interest rates have not fuelled the rise in consumer debt - the big question, says Guy Stephens, is whether this is harmful or beneficial to the overall economy
Money is cheap - so is it really a surprise the Bank of England voiced its concerns last week over rising consumer debt levels in the UK? Well, actually it is. Against a backdrop of falling wages, low interest rates, rising inflation, rising house prices, the fall of sterling and quantitative easing - the latter, somewhat ironically, being part of the Bank of England's current monetary policy to encourage spending - UK consumer debt is at a record high. We find the Bank of England's current concern surrounding rising consumer debt levels somewhat contradictory - on the one hand, it is...
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