BOE Can't Afford Not to Deliver Rate Hike, Says Dixon

The transcript discusses the Central Bank's decision to potentially raise interest rates, driven by market expectations and the need to stabilize sterling and control inflation. Despite economic slowdown and Brexit risks, a rate hike is seen as justified due to current economic growth levels. The Bank of England aims to reverse the rate cut post-EU referendum. Additionally, the UK consumer's credit binge amidst stagnant wage growth is highlighted, with concerns about its impact on consumption and GDP.

In what ways has real wage growth impacted consumer behavior in the UK?

What might happen to consumption levels if UK consumers become less willing to extend credit?