KPMG comments on today’s Bank of England money and credit data
A rise in consumer borrowing in March signals that many stretched households continue to battle the cost of living
A rise in consumer borrowing in March signals that many stretched households
Karim Haji, Global and UK Head of Financial Services at KPMG, comments on today’s March Money and Credit statistical release from the Bank of England:
“A rise in consumer borrowing in March signals that many stretched households continue to battle the cost of living by turning to credit to get by and deal with price hikes in areas of essential spend such as rent and transport.
Given that March saw a slower than expected fall in the rate of inflation, lenders must remain vigilant to how consumers are spending their credit and be ready to support those struggling to pay their bills.
Mortgage borrowing figures for March show that appetite for longer-term secured borrowing is increasing. However, recent increases in mortgage approvals for house purchases could be curtailed if the Bank delays its decision to cut rates.
Ultimately, this data release poses some questions for the Monetary Policy Committee. In the past month, markets have begun to revise their expectations for H1 interest rate cuts, with a drop below the current 5.25% now not priced in until late summer. The Bank may very well look to these figures, and stubborn inflation, as indication that it must stay the course a little longer – much to the likely displeasure of borrowers.”
ENDS
About KPMG UK:
KPMG LLP, a UK limited liability partnership, operates from 20 offices across the UK with approximately 18,000 partners and staff. The UK firm recorded a revenue of £2.96 billion in the year ended 30 September 2023.
KPMG is a global organisation of independent professional services firms providing Audit, Legal, Tax and Advisory services. It operates in 143 countries and territories with more than 273,000 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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