Sterling slips on Moody warning

British consumers are vulnerable to a hike in interest rates, ratings agency Moody’s has said, two weeks before the Bank of England is widely expected to hike borrowing costs for the first time in more than a decade.

British household debt levels are high and still growing, Moody’s noted in a report on the outlook for securities tied to the consumer economy.

The ratings agency’s comments came a day after Britain’s Financial Conduct Authority regulator said over four million Britons were having difficulty paying their monthly bills, especially younger consumers and renters.