Consumer's keep borrowing

Widely tipped rises in interest rates have not deterred consumers from the easy credit that is currently available.

14:23 05 May 2004

Widely tipped rises in interest rates have not deterred consumers from the easy credit that is currently available.

Figures have shown that lending to individuals increased by 11 billion during the month of March.

Borrowing on credit cards jumped 963 million - the highest increase in two years.

Furthermore, the pace of the housing market has been sustained, with 127,000 loans for house purchases approved in March, the same number as February.

With the Bank of England's monetary policy committee meeting this week to discuss the possibility of raising interest rates, the figures have added relevance.

Philip Shaw, an economist at Investec, stated: "The figures show that individuals' appetite for borrowing remains unabated.

"When you take into account mortgage lending and consumer credit combined, households remain very happy to borrow and spend. It is all pointing towards continued buoyancy in the