KPMG comments on BoE money and credit data - Feb 2023

Karim Haji, EMA and UK Head of Financial Services at KPMG, comments on today’s Money and Credit data from The Bank of England.

Karim Haji, EMA and UK Head of Financial Services at KPMG, comments on today’s Money

Karim Haji, EMA and UK Head of Financial Services at KPMG, comments on today’s Money and Credit data from The Bank of England:

“With high consumer spending over the Christmas period came another increase in borrowing. We can expect to see the knock-on impact of that on the economy in the next two months, with a slowdown in consumer spending.

“Households deposited an additional £3.9bn with banks and building societies in December. We are seeing a real increase in consumers switching and adding bank and building society accounts, taking advantage of higher rates and incentives offered to move balances.

“Monthly mortgage transaction volumes dipped slightly in December and have stabilised and normalised to pre-COVID levels. The interest rate paid on new mortgages saw its largest increase since December 2021, when we first saw the Bank of England increase base rate.

“The reality for everyone is that real disposable incomes have dropped, and after a period of two years of high volatility in expenditure, rates and inflation, we can expect to see personal balance sheets going through a period of consolidation over the next two quarters.”

ENDS

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For further information please contact:

Christina Bridge & Helen Jackson

E: christinabridgeandhelenjackson@kpmg.co.uk

M: 07789504905 or 07901115649

Gerard Swinley

Gerard.swinley@kpmg.co.uk

M: +44 7510 375540

About KPMG UK

KPMG LLP, a UK limited liability partnership, operates from 20 offices across the UK with approximately 17,000 partners and staff. The UK firm recorded a revenue of £2.72 billion in the year ended 30 September 2022.  

KPMG is a global organization of independent professional services firms providing Audit, Legal, Tax and Advisory services. It operates in 143 countries and territories with more than 265,000 partners and employees working in member firms around the world. Each KPMG firm is a legally distinct and separate entity and describes itself as such. KPMG International Limited is a private English company limited by guarantee. KPMG International Limited and its related entities do not provide services to clients. 

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