"Urgent" need for action on debt

Thursday, 22 April 2004 12:00 AM

The Liberal Democrat's are on the attack as consumer debt has once again come into the limelight.

Vince Cable, the Lib Dem's shadow chancellor made criticisms about the Monetary Policy Committee's minutes from yesterday.

Mr Cable announced, "Some at the Bank believe that levels of debt are making households increasingly vulnerable. Gordon Brown must urgently address the failures that have allowed banks to lend irresponsibly and fuel unsustainable levels of debt."

His comments follow chancellor Gordon Brown's announcement that the situation of interest rates needs to be closely reviewed.

Mr Cable feels it is time for real action as the MPC is currently torn between the fear of extending the credit boom and causing the credit bubble to burst.

There seems to be genuine concern from the Bank of England about the rise in debt in the minutes released yesterday, and therefore is looking at the possibility of a solution from interest rate increases.

Tags: