Cable: Rise in interest rates would hurt indebted households

Vince Cable has warned that hiking interest rates would hurt indebted households, after the Bank of England hinted today it may raise rates in the coming months. The Bank of England's nine-strong Monetary Policy Committee voted today by 7-2 to keep interest rates on hold at 0.25%, amid sluggish growth and a squeeze on household spending. However, the nine policy-makers then stated that "some withdrawal of monetary stimulus was likely to be appropriate over the coming months." Liberal Democrat Leader Vince Cable commented: “The Bank of England's decision today shows that the UK economy is still too weak to be taken off life support. "Despite interest rates being at a historic low, growth is already anaemic, wages are falling and consumer spending is fizzling out. "Raising rates would push up borrowing costs at a time when many squeezed households are increasingly relying on credit. "With the embarrassing lack of progress in the Brexit negotiations weighing more on businesses every day, the risk of Britain tipping into recession is very real.”