THE TELEGRAPH: Mervyn King, the governor of the Bank of England, last night issued a stark warning to indebted households, fuelling fears that borrowing costs could soon rise to six per cent.
He said that families should borrow on the assumption that interest rates were going to rise further.
The warning came amid growing evidence that many thousands of households have over-extended themselves, with consumer debt and insolvencies at record levels. Bank chief hints at rate rise to 6pc (more) By Edmund Conway and Harry Wallop
Mark Alexander
