The decent increase in unsecured borrowing in March suggests that the plunge in consumer confidence and fall in real incomes have not caused consumer spending to collapse. This lends some support to our view that not only will the Bank of England raise interest rates from 0.75% to 1.00% at tomorrow’s policy meeting, but that it will continue to raise rates until they reach a peak of 3.00% next year.
UK Drop-In (5th May 10:30 EDT/15:30 BST): Our UK Economics team are holding a special 20-minute briefing to discuss the latest MPC decision and what it means for their outlook for UK growth, inflation and BoE policy. Register now
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