Core Insights - The Bank of England has been in a rate-cutting cycle for a year, yet households are facing the highest borrowing costs in a generation, leading to a significant reduction in overall spending [1] - Total annual spending by UK households has decreased by £11 billion (approximately $14.5 billion) compared to July of the previous year [1] - The decline in spending is attributed to reduced savings returns due to lower interest rates and many homeowners not yet benefiting from the rate cuts due to existing high-rate mortgage agreements [1] Group 1 - The Bank of England has cut interest rates four times in the past year, but the impact on consumer spending remains limited [1] - The reduction in household spending is primarily due to the negative effects on savers and the delayed benefits for mortgage holders [1] - Economic conditions such as stagnant real wage growth and tightening fiscal policies are expected to continue suppressing consumer spending in the coming years [1]