Rate rises mean little to consumers

A new survey has revealed that the latest interest rates rise has had little effect on consumer confidence.

11:04 28 May 2004

A new survey has revealed that the latest interest rates rise has had little effect on consumer confidence.

Consumer confidence was unchanged at minus two in May, according to the latest survey from Martin Hamblin GfK.

The figure is one point higher than the same month last year and above the annual average, the BBC has reported.

But GfK warned of a possible delayed reaction to the Bank's latest hike og 0.25 per cent to 4.25 per cent.

"We may not have seen the impact of this decision on consumers yet," said Roger Wright, director of Martin Hamblin GfK.

Ross Walker at RBS Financial Markets added: "That overall consumer confidence held steady in the face of higher interest rates and petrol prices is encouraging."