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Personal Debt Too High

Written By On 20/11/2013

A few days ago, Mark Carney suggested that if unemployment rate was to hit 7 per cent earlier than anticipated, then the bank will still not necessarily lift interest rates.

The minutes from the MPC earlier this month appears that the other eight members of the committee were in agreement with the Bank of England Governor, as they all decided to leave interest rates on hold at 0.5 per cent.

The Monetary Policy Committee's minutes read:
With the proviso that medium term inflation expectations remain sufficiently well anchored, the projections for growth and inflation under constant bank rate underlined that there could be a case for not raising bank rate immediately when the 7 per cent unemployment threshold was reached.

The unemployment rate currently stands at 7.6 per cent.

The BOE feel that Britain is in the process of continual recovery but still question the ' durability'. But they do add that inflation appears to be under control.

But the Centre for Social Justice who are an independent think-tank have produced a report that warns that the UK's time is running out. The name of the report, ' Maxed Out' , was released today and tells us that UK personal debt is practically at an all time high as it approaches nearly one and a half trillion pounds.

It says that average personal debt has doubled within the last ten years and is now around fifty four thousand pounds per household. However, most of that is due to mortgage loans. It adds that unsecured consumer debt has multiplied by nearly three times within the last twenty years and is now more than one hundred and fifty billion pounds.

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