KPMG comments on today’s Bank of England money and credit data

Karim Haji, Global and UK Head of Financial Services at KPMG, comments on today’s Money and Credit data from the Bank of England (for June):

“The slight dip in consumer borrowing in June reflects the fact that the more positive economic outlook – with growth forecasts being revised upwards – is yet to be felt by consumers.

“Despite these positive economic indicators, it remains to be seen whether a turnaround will be sustained or if challenges are on the horizon. What is clear is that despite two straight months of inflation remaining on-target, households aren’t necessarily feeling better off for it – indeed, wage growth has slowed in recent months, which may go some way to explaining this.

“Borrowers may well be awaiting movement on the Bank of England’s base rate before deciding to take out more credit although the recent fall in mortgage rates may lead to increasing confidence and appetite.

“Similarly, these latest figures were taken whilst we were in the thick of the general election campaign, with many borrowers perhaps waiting until a clearer sense of the incoming Government’s fiscal policy emerged.”

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.