Comments: Interest rates at the crossroads

All very well, except that the consumer might be MEWed up to their eyeballs and unable to squeeze anything more out of their bank manager because house prices just stop going up.

Barclays has just released an RNS saying that "delinquency" of its credit card debt has hit a peak.

This suggests the downturn in consumer spending may be rather more serious than you suggest. If you look at recent annoucements, its all big ticket discretionary items that have been hit: Dixons, Jessops, Kesa and JJB (noone really needs a replica football top).

It also suggests interest rates will come down.

Posted by Paul at May 27, 2005 05:21 PM

They will come down - the question is how long will it take. There's an interesting speech from Steve Nickell of the MPC today (May 31) saying there is more spare capacity in the labour market than has been assumed.

Posted by David Smith at May 31, 2005 12:52 PM

Steven Nickell is right. The most common response to a job application in the private sector is "overwhelmed by high quality applicants".

Posted by HJ at June 16, 2005 04:24 PM
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