The Bank of England (BOE) released its quarterly bulletin on Tuesday. The central bank said that households are better prepared for an interest rate hike than a year ago.

"Households appear a little better placed to cope with a rise in interest rates than a year ago and survey responses do not imply that a rise in rates would have an unusually large impact on spending," the central bank said.

"The Government's plans for fiscal consolidation are likely to continue to weigh on household spending," the BoE added.