THE case for a cut in the cost of borrowing was strengthened last night by figures showing that personal debt rose at its lowest rate in more than two years last month.

Growth in total net lending to individuals increased by 11.1 per cent on the previous year - the smallest rise since January 2002 - with mortgage approvals stabilising and consumers incurring less credit card debt.

Economists said the figures, from the Bank of England, suggested households' appetite for debt was moderating and further increased the chance of rates being lowered next week.

Last month, debt on credit cards and other loans increased by £1.3bn, its weakest annual growth in nearly four years and well below the £2bn rise seen in May.

The number of loans approved for house purchases was unchanged at 96,000.