Karim Haji, EMA and UK Head of Financial Services at KPMG, comments on today’s Money and Credit data from The Bank of England:
“While this time last year we were breathing a sigh of relief that the worst of the pandemic was behind us, that optimism now seems a dim and distant memory. We enter 2023 cautiously with a subdued economy expected to last well into the year.
“The increase in the cost of living has driven consumer lending up in November with an additional £1.2 billion of credit card borrowing. Whilst this year’s Christmas discretionary spending will have been sacrificed, inflation on essentials and the increased cost of energy means debt is still being accumulated for food, lighting and staying warm.
“Mortgage approvals reached their lowest rate since June 2020 yet mortgage debt increased, meaning fewer consumers are borrowing more money.”
