KPMG UK 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 statistical release from the Bank of England (for March): 

“The second consecutive fall in borrowing this year suggests that the financial struggles of some households may be starting to ease, supported by a lower-than-expected drop in headline inflation.

“While households are facing higher energy bills, ongoing global trade tensions have contributed to a notable drop in energy prices, which could see the Ofgem price cap considerably reduced in Q3. Oil prices have also fallen, which may offer motorists some financial respite in the coming months.

“But geopolitical tensions continue to cast widespread uncertainty over the economic outlook. In addition, the upcoming cuts to welfare spending and ongoing affordability challenges mean there are difficult months ahead for many households.

“Another dip in mortgage approvals underscores the affordability challenges many are facing, particularly against lower-than-expected headline inflation, an unchanged base rate and incentives to rush through mortgage deals ahead of April’s stamp duty increase.

“With such an uncertain economic outlook, lenders will need to be alive to the financial struggles of their customers and be ready to step in to support them both now and in the months ahead.”