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

Bank of England – Money and Credit data – March 2022

Bank of England – Money and Credit data – March 2022

Karim Haji, head of financial services at KPMG UK, said:

“We’re still in a position where March’s data isn’t hugely useful in evaluating the state of the economy. The energy price cap came into effect on 1st April and the consensus is that the cost-of-living crisis will get worse as the year goes on. However, there’s so far little evidence of households running down the stock of savings accumulated during Covid-19, with the squeeze on incomes instead reflected in the rise in consumer credit.

“It was clear from the flurry of trading updates from the big UK banks last week that they are looking to use all the tools in their armoury to help consumers and businesses through a very difficult year. That will include payment holidays, increasing overdrafts and revolving credit facility limits, as well as loosening terms when they can. It also makes sense to provide temporary relief to customers.

 

“Meanwhile, though the property market appears to be still relatively buoyant, with inflation rising so steeply that looks unlikely to last. As consumers have less disposable income, this will be something that lenders will need to adjust to.”

ENDS.

 

Media contact:

For further information please contact:

KPMG Media Relations

Gerard Swinley

Gerard.swinley@kpmg.co.uk

M: +44 7510 375540

 

About KPMG:

KPMG LLP, a UK limited liability partnership, operates from 22 offices across the UK with approximately 15,300 partners and staff.  The UK firm recorded a revenue of £2.43 billion in the year ended 30 September 2021.

KPMG is a global organisation of independent professional services firms providing Audit, Legal, Tax and Advisory services. It operates in 145 countries and territories with more than 236,000 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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