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Trouble in store: the grave future of British public and private debt

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A future of rising interest rates and deepening debts beckon, with the UK unable, or unwilling, to countenance a solution

When interest rates begin to rise, we're told they will top out at 3%. Don't worry, homeowners, say the rate-setters, crippling monthly payments are a thing of the past.

Charlie Bean, the former deputy governor of the Bank of England and one of the rate-setters until last month, made it clear that the scale of household debts made it impossible to return to something like normal within the next 10 years.

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