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UK consumers increase borrowing at fastest pace in 5 years

Published Nov 29, 2023 09:52 Updated Nov 29, 2023 10:25
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© Reuters. People queue inside the Westfield Stratford City shopping centre in London, Britain, December 5, 2020. REUTERS/Henry Nicholls/File Photo

LONDON (Reuters) -British consumers increased the pace of their borrowing by the most in five years in the 12 months to October, according to Bank of England data published on Wednesday which underscored the impact of the higher cost of living on households.

Consumer credit grew by 8.1%, the most since the 12 months to October 2018, the data showed.

"Some of this might be because the cost of living crisis has forced some households to borrow to fund necessary spending," Paul Dales, chief UK economist at Capital Economics, said.

Net borrowing by consumers of just under 1.3 billion pounds in October suggested higher interest rates were yet to significantly crimp spending by individuals, Dales said.

The BoE also said lenders approved 47,383 mortgages for house purchases last month, the most since July but still much lower than before the sharp rise in mortgage costs a year ago.

Economists polled by Reuters had expected a smaller increase to 45,000 approvals.

UK consumers increase borrowing at fastest pace in 5 years
 

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Comments (2)
Fred Ham
Fred Ham Nov 29, 2023 10:18
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And that is exactly why the interest rates went up and why they have caused all this stress, so people borrow money at a higher rate, so Bank can make more money
Gaurav Jairath
Gaurav Jairath Nov 29, 2023 10:18
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What a load of tosh. Clearly no idea how exonomics works
Steven Oldale
Steven Oldale Nov 29, 2023 10:18
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Savings down, credit up. How long can the consumer keep going? Debt is unsustainable imo.
 
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