“The decline in broad money shows that higher interest rates are working,” said Ashley Webb, economist at Capital Economics. “Although interest rates have probably peaked, this effect will intensify as the Bank of England keeps rates at their peak until late in 2024 and the full impact of previous rate hikes is eventually felt,” he added. August’s fall in broad money growth followed a decline in the rate since late last year. The figures suggest higher interest rates are working by reducing households’ and firms’ demand for borrowing, which should lead to softer activity and lower inflation, said Webb.