UK Consumer Debt is Slowing Down Says BoE

August 30, 2017 Share Print 0

The rapid growth in borrowing by consumers appears to be slowing amid a squeeze on households, despite remaining at levels unseen since the financial crisis.

The annual rate of growth for consumer borrowing through credit cards, overdrafts and personal loans slowed to 9.8% in July, the lowest rate of expansion since April 2016, according to the Bank of England. The growth rate was a little weaker than in recent months, when the pace of expansion was above 10%.

Spending by British consumers is growing at the weakest rate in almost three years, as households come under pressure to tighten their belts from higher prices fuelled by a drop in the value of the pound since the EU referendum. Wages rose by 2.1% in June, while inflation stood at 2.6% in July, leading to negative earnings growth.

via The Guardian

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Alfonso Esparza

Senior Currency Analyst at Market Pulse

Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.