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Stagnating Housing Market and Rising Consumer Debt Causing Nightmare Situation - Cable

3.46.00pm GMT Tue 13th Nov 2007

Vince Cable [Photo: LDD Pics]

Acting Leader of the Liberal Democrats, Vince Cable MP

Commenting on the rise in CPI inflation from 1.8% to 2.1% in October, Acting Leader of the Liberal Democrats, Vince Cable MP said: "With rapidly rising fuel costs it is unsurprising that we have seen inflation once again rise above the Bank of England target rate, likely ending any lingering hope of an interest rate cut this year.

"We now find ourselves in the nightmare situation of a slowing economy due to a stagnating housing market and people struggling to service high levels of debt. Yet these inflation figures make it impossible for the Bank of England to reduce interest rates.

"This is the consequence of years of growth driven by under priced credit due to Gordon Brown's refusal to include housing in the inflation measurement.

"Housing must be included in the inflation measurements used by the Bank of England if our interest rates are to accurately reflect the state of the economy."

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[Previous news story]: Banks Must Act More Responsibly - Goldsworthy (Tue 6th Nov 2007).
[Next news story]: Northern Rock Buyer Must Pay Back Taxpayers £24 Billion - Cable (Fri 16th Nov 2007).

Related News Stories:

Thu 31st Jan 2008:

[Government Failing To Prevent Rising Repossessions - Cable]

Wed 5th Dec 2007:

[Government Must Take Action To Prevent House Market Crash - Cable]

Sat 17th Nov 2007:

[Chancellor Must Explain Northern Rock Situation To The House Of Commons - Cable]

Mon 8th Oct 2007:

[Huge Levels Of Consumer Debt Damaging Economy - Cable]

[Council Tax Causing Fall In Disposable Income - Cable]

Fri 27th Jul 2007:

[Courts must find in favour of consumer in overdraft case - Cable]

Fri 22nd Jun 2007:

[Treaty Must Not Undermine Single Market - Cable]

Mon 4th Jun 2007:

[Rising Repayments Will Lead To Growing Distress For Home Buyers - Cable]

Mon 2nd Apr 2007:

[Government's debt position not flattering - Cable]

Tue 16th Jan 2007:

[Rising inflation could lead to more repossessions - Cable]

Mon 15th Jan 2007:

[Financial advice must be available now to halt spiralling debt - Cable]

Wed 1st Nov 2006:

[Irresponsible Lending Fuelling Housing Market - Cable]

Wed 25th Oct 2006:

[Personal Debt Crisis Deepens - Cable]

Wed 20th Sep 2006:

[Government Should be Honest About PFI Debt - Cable]

Thu 3rd Aug 2006:

[RATE RISE WILL HIT THOSE IN DEBT - CABLE]

Sun 23rd Jul 2006:

[YOUNG PEOPLE'S DEBT SPIRALLING OUT OF CONTROL - CABLE]

Tue 18th Jul 2006:

[RISING ENERGY PRICES CAUSING HIGHER INFLATION - CABLE]

Fri 14th Jul 2006:

[Urgent need to help young with debt - Cable]

Fri 24th Jun 2005:

[Liberal Democrats Welcome Funding for Debt Advice - Cable]

Thu 23rd Jun 2005:

[FSA Regulation Should Cover Buy To Let Market - Cable]

Tue 14th Jun 2005:

[Government Must Take Action on Housing Market ]

Fri 23rd Apr 2004:

[UK Economy Sustained By Consumer Debt]

Thu 22nd Apr 2004:

[British Banks Urged To Control Rising Debt Levels - Cable]

Thu 19th Feb 2004:

[Bank Profits Are At The Expense Of Consumer Debt - Cable]

Fri 23rd Jan 2004:

[Retail Sales Figures Fuelling Consumer Debt - Cable]

Wed 21st Jan 2004:

[Mortgage Debt Still Rising Too Rapidly]

Wed 19th Nov 2003:

[Consumer Debt: OFT should act not patronise]

Thu 18th Sep 2003:

[DEBT: Students mortgaging their futures, says Cable]

Wed 9th Jul 2003:

[CONSUMER CREDIT: GOVERNMENT LETHARGY COSTING CONSUMER DEARLY]

Thu 29th May 2003:

[Housing Market Bubble In Danger Of Bursting For Third Time In A Generation - Cable]

Tue 13th May 2003:

[ROGUE LENDERS MUST BE STARVED OUT OF THE MARKET: CABLE]

Related Press Articles:

Sun 1st Feb 2004:

[A Debt and Housing Bubble]

Wed 5th Nov 2003:

[Housing Market To Crash]

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