The BBC reports record spending on credit cards. Does it matter? And what is the role of the Bank of England "Monetary Policy Committee" in relation to the 'management of the economy'...
Here is what the BBC says:
Consumers now owe a collective total of £52.92bn on credit cards.The UK central bank raised interest rates by a quarter-point in November - from a 48-year low of 3.5% - largely because it was concerned that debt and house prices were rising too fast.
The combination of rising debts and rising interest rates has led some experts to warn that personal bankruptcies will also rise.
However, the latest figures show that, while borrowing is still on the rise, more repayments were also being made.
The Bank's Monetary Policy Committee is due to hold its first interest rate meeting of the year next week, but is widely expected to leave borrowing costs unchanged.
However, many analysts believe a further rise in the cost of borrowing is likely, possibly as early as February.
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