UK consumer credit growth falls to 18-month low

Decline will soothe Bank of England fears about reckless lending while household incomes are being squeezed

The UK's consumer debt boom has eased back after growth in lending on credit cards and loans fell to an 18-month low.

The Bank of England said unsecured consumer credit grew by 9.6% year on year in October, down from 9.8% in September, soothing fears that banks were lending recklessly at a time when household incomes have come under pressure from stagnant pay growth and high inflation.

Related: Business Today: sign up for a morning shot of financial news