KPMG comments on today’s Bank of England money and credit data
Karim Haji, head of financial service comments on today’s Bank of England money and credit data
Karim Haji, head of financial service comments on today’s Bank of England money and credit
Karim Haji, head of financial services at KPMG UK, said:
“It’s hard to take too bullish a view on the consumer picture when the expectation is still that inflation will top 10 percent this year, driven in part by huge rises in utility and petrol prices. It will be important to track credit card and consumer debt for additional signs of stress for consumers through the next two quarters.
“Major UK banks have this week reported no huge deterioration in credit quality, but they will be mindful of the need to support the most vulnerable customers through what will be a hugely challenging second half of the year. Meanwhile, reports from other parts of the economy, such as supermarkets, indicate that people are moderating their spending as far as they can to cope with the rising costs.
“The housing market continues to defy the vulnerabilities facing mortgage borrowers. While robust demand has kept house price growth strong in recent months, renewing a two-year fixed rate mortgage today would already result in an interest rate twice as high as just two years ago. This trend will likely continue as the Bank of England increases interest rates further this year.”
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