The charity Citizens Advice has today said households will need time to adjust to any rise in interest rates. The Bank of England’s Monetary Policy Committee has today voted 8-1 to keep interest rates unchanged.
Gillian Guy, chief executive of Citizens Advice, said: “Households need to be primed and ready for a rise in interest rate. Many people are just about managing financially which means even a small interest rate rise can tip them over the edge.
Any rise in interest rates must be slow and steady so people have time to adjust. It is crucial that people have access to free money and debt advice in order to budget for a rate rise.
Creditors can help borrowers by explaining the impact a rise will have and help them to prepare, as well as recognising where they can be flexible to help people keep afloat.”