British unsecured lending to households increased by £2.464 billion ($3.26 billion) in August 2026, marking the largest monthly increase since records began in 1993 and the fastest annual pace on record, according to Bank of England data. The nominal increase exceeded economists' £1.9 billion forecast, while consumer confidence reached a two-year high and retail spending unexpectedly increased. Mortgage approvals for UK home purchases fell to 54,918 from a downwardly revised 55,928 in July, the lowest level since December 2023, as rising energy prices linked to the war in Iran pushed up mortgage costs and reduced expectations for interest-rate cuts. Finance minister John Healey is due to present his first annual budget on October 28, with economists expecting tax rises to support deficit-reduction goals. Investors expect the Bank of England to raise interest rates in November and have priced in another increase for February.