Household debt 'dangerous' to all, warns BoE official

‘Spiral of complacency’

Julian Marr
clock • 3 min read

Household debt poses a danger to everyone in the UK economy, Bank of England (BoE) executive director of financial stability Alex Brazier has warned.

In a speech to the University of Liverpool's Institute for Risk and Uncertainty on Monday, Brazier, who is also a member of the BoE's Financial Policy Committee, highlighted recent developments in household debt, the dangers it poses to the wider economy and three "lines of defence" put in place by regulators to guard against those dangers. High levels of mortgage debt can make downturns deeper by causing consumers aggressively to cut back spending to service their mortgages, he argued, while high levels of consumer debt - like credit card debt and personal loans - can make banks more vu...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Economics / Markets

Trump, tariffs and why UK companies can still appeal

Trump, tariffs and why UK companies can still appeal

Is a trade war inevitable?

Sheldon MacDonald
clock 11 December 2024 • 4 min read
Why the lead-up to the Budget may have been worse than the Budget itself

Why the lead-up to the Budget may have been worse than the Budget itself

What Rachel Reeves and Dr Evil have in common

Laith Khalaf
clock 13 November 2024 • 4 min read
Bank of England meets expectations with 25 basis point rate cut to 4.75%

Bank of England meets expectations with 25 basis point rate cut to 4.75%

'Continued progress' on disinflation

Valeria Martinez
clock 07 November 2024 • 2 min read