Irresponsible Lending Increasing As Rates Rise - Cable

1.52.27pm GMT Fri 10th Nov 2006

Commenting on the rise in interest rates today, Liberal Democrat Shadow Chancellor, Vince Cable MP said: "People are now facing a three pronged attack from rising interest rates, rising unemployment and record levels of personal debt. This will spell further catastrophe for many hard working families.

"Further evidence of irresponsible lending is likely to be highlighted in the coming months as interest rates reach their highest levels for over five years.

"The Government should be working with the financial services industry to achieve a national roll-out of independent advice centres, providing people with early access to financial health checks before they get into a crisis situation."

"The Bank of England could take a more active role in asset markets. Including house prices in the official measure of inflation should be considered."

Commenting on the effect on savers, Mr Cable said:

"It is essential that banks now pass along the rise in interest rates to savers as soon as possible. I have written to the major banks today asking for their timetable and will await their response with interest."