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 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.

Inflation in the UK fell to 1.6% in July as fashion stores launched summer discounts and fierce competition between supermarkets helped keep a lid on food prices for the longest stretch in a decade.

Chancellor George Osborne shocked the City today as he unveiled Canadian Mark Carney as the first non-British citizen to be appointed as governor of the Bank of England.