Five rises in the base rate of interest since August of last year have begun to impact the spending habits of UK consumers, according to one analyst reflecting on the latest inflation data.
Mark Baker from Alliance & Leicester suggests that households across the country are “amending their behaviour” in the wake of the increases in the cost of borrowing.
In fact, as millions of consumers seek to end their debt management struggles, Mr Baker asserts that credit consumers and homeowners are “feeling the pinch” after the Bank of England’s recent interest rate decisions.
“Mortgage borrowers are saving less than people who don’t have mortgages and they’ve cut their unsecured borrowing, their credit card and personal loan borrowing too, much faster than anyone else,” Mr Baker told Channel 4.
The minutes from the Bank of England’s most recent monetary policy committee meeting revealed that all nine members voted to maintain the cost of borrowing at 5.75 per cent until September at least.