KPMG comments on BoE money and credit data - May 2022

Karim Haji, head of financial services at KPMG UK, said:

“We’re still in a position where March’s data isn’t hugely useful in evaluating the state of the economy. The energy price cap came into effect on 1st April and the consensus is that the cost-of-living crisis will get worse as the year goes on. However, there’s so far little evidence of households running down the stock of savings accumulated during Covid-19, with the squeeze on incomes instead reflected in the rise in consumer credit.

“It was clear from the flurry of trading updates from the big UK banks last week that they are looking to use all the tools in their armoury to help consumers and businesses through a very difficult year. That will include payment holidays, increasing overdrafts and revolving credit facility limits, as well as loosening terms when they can. It also makes sense to provide temporary relief to customers.

 

“Meanwhile, though the property market appears to be still relatively buoyant, with inflation rising so steeply that looks unlikely to last. As consumers have less disposable income, this will be something that lenders will need to adjust to.”

ENDS.

 

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KPMG LLP, a UK limited liability partnership, operates from 22 offices across the UK with approximately 15,300 partners and staff.  The UK firm recorded a revenue of £2.43 billion in the year ended 30 September 2021.

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