This is based primarily on the observation that growth in bank lending has remained high, despite high interest rates. This argument is weak in several respects, as it does not acknowledge factors such as income growth and the broadening reach of the banking sector, both of which should be expected to encourage more borrowing.
Even if borrowing was unresponsive to interest rate changes, it goes without saying that increased costs of borrowing must be accommodated elsewhere in household budgets. Therefore, there has to be an impact in terms of dampening demand overall.