Alex Kerr, UK economist at the consultancy Capital Economics, said that while borrowing costs remained “uncomfortably high”, the data showed “concerns about tax rises in the Budget have not paralysed housing demand as much as it seemed”. The BoE figures also showed net borrowing of consumer credit was £1.5bn in September, down from £1.7bn in August but broadly in line with the pattern of recent months and with analysts’ expectations. Kerr said this showed strong retail sales in September had not stopped households spending in other areas, and implied they were not “reining in spending due to fears about tax rises” — although savings rates remain high relative to historical norms.