Advisers fear consumers have become used to taking on "cheap debt" in a decade of low interest rates and warned there could be consequences for those with "a false sense of security".
It has been 10 years to the day, on 5 July 2007, since the Bank of England (BofE) last decided to raise interest rates. Just before the global financial crisis, the BofE Monetary Policy Committee (MPC) voted to raise rates to 5.75%. Since then rates were gradually lowered and have been held at 0.25% since the summer following the Brexit vote. While the number of MPC members voting for a rate rise has increased from one to three, BofE governor Mark Carney rejected the calls for a hike in his Mansion House speech in June. Carney said he was waiting to see the effects of weaker consum...
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