KPMG has recently commented on the latest Money and Credit data from the Bank of England.
Karim Haji, Global and UK Head of Financial Services at KPMG, shared key insights on the newest Money and Credit data from the Bank of England (for the month of July 2024).
Karim Haji from KPMG has recently noted:
“July’s boost in borrowing points to growing consumer confidence to take on more credit, buoyed by a more stable economic and political outlook. The start of the summer holidays, festival season and the summer of sport will have also increased appetite to borrow. But July’s rise in inflation, while modest, suggests that we aren’t completely out of the woods. And while consumer confidence hit a three year high last month and some households are reporting improved finances, there are still many that are squeezed by the sharp rise in energy and food prices of the last two years.”
They added:
“Although domestic inflation pressures are broadly starting to abate, it remains to be seen whether recent falls in service price inflation and slower pay growth will be enough to prevent a temporary climb in headline inflation. And despite this month’s long awaited base rate cut, the Bank will continue to approach future rate cuts with caution, so households will still feel the effects of a higher for longer rate environment, particularly if progress on underlying inflation is insufficient over the coming months.”
Haji also mentioned:
“Lenders will need to remain vigilant when it comes to new applications for credit and continue to provide the necessary support for those who aren’t yet feeling the effects of an improved economic environment on their finances.”
In other key and separate updates, it was noted that the UK takes another big step forward towards 2030 clean power target. And KPMG UK responds to the results of the Government’s sixth renewables auction.
Responding to the results of the Government’s sixth renewables auction, Simon Virley CB, Vice Chair and Head of Energy and Natural Resources at KPMG UK, said:
“The results of the latest renewables auction (AR6) are another important step forwards towards achieving the Government’s 2030 Clean Power mission. The auction secured almost 10GW of new renewable capacity at prices well below the upper limit set by the Government – once again demonstrating the effectiveness of the UK’s Contract for Difference auction framework in driving competitive tension and ensuring value for money for consumers as we make the transition to a fully decarbonised power system.”
