UK ready for rate hikes

HOUSEHOLDS will be able to withstand interest rate hikes because Britain’s buoyant jobs market is boosting pay, according to a Bank of england official.

Gertjan Vlieghe, a member of the Monetary Policy Committee that sets rates, said a pick-up in wages and an increase in household debt meant the economy was ‘ready for somewhat higher interest rates’. and he insisted the 0.25pc rate rise in november to 0.5pc – the first for more than a decade – was not a one-off. ‘We are on a trajectory – it wasn’t one hike and then we take a very long break,’ Vlieghe said in a speech.

The comments followed a report last week by the Bank that set the scene for rates to rise again in May.