Bank of England likely to delay interest rate rise

The Bank of England has been put under pressure to delay raising interest rates, according to the Guardian.

The move comes after figures for manufacturing and consumer credit indicated weakness in the UK economy. The Bank of England had been widely expected to approve a further interest rate increase until the figures were released on Friday.

A snapshot of economic performance by the Chartered Institute of Procurement and Supply together with information company Markit indicated that the economy slowed in the first quarter of 2018 and continued to slow in the second quarter.

CIPS/Markit fell from 54.9 in March to 53.9 in April, the weakest rate of expansion in 17 months. Any figure above 50 indicates growth in manufacturing output.

Data from the Bank of England indicated a drop in consumer demand for unsecured borrowing. According to monthly money and credit statistics, lending to consumers stood at £300m in March, the smallest increase since November 2012 and well below the six-monthly average of £1.5bn.

The slowdown in consumer borrowing follows a tightening of rules by the Financial conduct Authority, which aimed to restrict the growth rate of consumer borrowing. This had been rising at 10% or more on average between 2014 and 2017. In March, the rate fell from 9.4% to 8.6%.