You are here: Home - Uncategorized -

Consumers keeping chipper despite the rate rises

Written by:

Consumer confidence rose in the UK as people shook off the recent interest rate rises – and the prospect of more to come – according to Nationwide Building Society’s consumer confidence index.

The index rose two points to 90, its highest level since October 2006, and Nationwide commented that the figures suggested that UK consumers had come to terms with three recent interest rate rises.

Despite the rises, and the prospect of another hike tomorrow, Nationwide said consumers remained “upbeat” about the future, with no slackening of house prices imminent and the economy continuing to perform well.

“This increase in confidence suggests that consumers have come to terms with the recent interest rate rises,” said Nationwide chief economist Fionnuala Earley.

“But with inflation more than 1% above target, it seems likely that the Bank of England will this week increase rates at least one more time.

“The extent to which this hits consumer confidence will to some extent depend on the impact of falling utility prices this summer against higher debt repayments.”

The Monetary Policy Committee (MPC) at the Bank of England – the body that sets the interest rate – is widely expected to raise the rate by 0.25% tomorrow to 5.5% in a bid to stem inflation.

Despite the positive sentiments expressed in the Nationwide report, some observers feel that another rise in the rates could spell trouble for millions of heavily indebted consumers.



Tag Box




Financial fitness

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

Are you a first-time buyer looking for a mortgage?

Look no further, get the help you need by searching for your perfect mortgage

Which ISA is right for you? A round up of the six products available in 2017

From cash to innovative finance to lifetime, here's our guide to the ISA products available to savers this yea...

Guide to buy-to-let tax changes

In late 2015, former Chancellor George Osborne announced a range of  tax measures aimed at landlords, which t...

A guide to switching energy provider

All you need to know about switching from one energy supplier to another.

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

Five fund tips for a 0.25% interest rate environment

With interest rates stuck at a record low 0.25% and expectations rates could fall to close to zero, here are ...

Protecting family wealth: 10 tips for cutting inheritance tax

Inheritance tax - sometimes known as 'death tax' - can cause even more heartache for bereaved families. But th...

Travel insurance: Five tips to ensure a successful claim

Ahead of your summer holiday, it’s important to make sure you have the right level of travel cover or you co...

Investing your money

Alliance Trust Plc gives you smart insight into how to invest your money

Money Tips of the Week

Read previous post:
Retail sales slow in April as Bank Rate outlook ‘darkens’

Retail sales growth in the UK slowed in April to a rate of just 2.4%, according to the British Retail Consortium...