The Bank of England's monetary policy committee's decision to raise interest rates to dampen inflationary pressures in the UK economy has acted to encourage consumers to top up their savings accounts, it has been revealed.

The results of a survey conducted by independent financial advice website Unbiased suggest that the response of families to the increased cost of borrowing has been to tighten their fiscal belts.

Unbiased's figures show consumers are taking advantage of the more attractive rates of interest offered by current account providers, with savings levels for the second quarter of 2007 exceeding 47 billion.

Meanwhile, just 4 billion worth of secured and unsecured debt was taken out by UK consumers from May to June this year - down almost 13 billion compared with the same quarter in 2006. This means there has been a significant realignment in Unbiased's savings brake figures, which demonstrate the ratio of borrowing - not including mortgage debt - to savings.

During the year's second quarter, just eight pence was borrowed by the average UK consumer for every pound saved - comparing favourably with the 32 pence borrowed for every pound set aside in a bank saving account in the first three months of 2007.

With savings up by almost 10 billion on the same period last year, levels are now at the highest in the survey's six-year history. David Elms, chief executive of Unbiased, welcomed the news but cautioned that consumers should not rest on their laurels - especially as UK personal debt continues to rise.

"It is extremely encouraging to see that savvy consumers are taking advantage of the recent rate hikes with previously unseen record levels of savings now taking place," he said.

"Plus it's even better that Britons appear to have tightened their belts and are approaching borrowing far more cautiously than in previous months.

"Last quarter saw the savings brake ratio worryingly move back up above the 40 pence mark - a consequence of paying off Christmas debt - so it's with relief that we see it fall by a staggering 24 pence in quarter two.

"However we shouldn't take these figures for granted - it's important to note that personal debt in the UK continues to rise and, as such, UK consumers should continue to be savvy when it comes to saving and spending their money."

The study draws on data supplied by the Bank of England and the British Bankers' Association, as well as other sources.
: Andrew Regan is an online, freelance author from Scotland. He is a keen rugby player and enjoys travelling.