A study by HSBC revealed that borrowing enquiries in January increased by 4.4 per cent.

This suggests that our appetitive for loans has remained strong.

In fact the figures showed a marked increase on the previous month, which registered a 2.3 per cent rise.

“Intense price competition in the market is clouding the picture but is clearly supporting borrowing activity,” HSBC economist John Butler told Reuters.

The Bank of England raised interest rates five times between the months of November 2003 and August 2004.

The MPC is however expected to keep them hold this month.

To read more about loans, click here.
© DeHavilland Information Services plc