Bank warns of rate hikes - papers 29 August

A WARNING CAME from the Bank of England yesterday over levels of consumer debt in the face of possible interest rate increases, writes The Daily Telegraph. Monetary Policy Committee member Paul Tucker said that rates were now more likely to rise than fall and that they were below their long-term average. He suggested that "personal finances would be managed on the basis that rates are likely to be somewhat higher in the medium term". Tucker admitted that it was difficult to know just what was a "safe" level of consumer debt, but noted that debts as a ratio of incomes ha...