UK credit stress is rising, BoE official warns
David Bailey says financial firms “need to take action now” to prepare for higher defaults
Credit stress is likely to add further pressure to financial firms already affected by higher interest rates, the Bank of England’s David Bailey said today (May 4).
Bailey, executive director for UK deposit-takers supervision, said inflation and rising interest rates had driven down consumer confidence, cut spending and increased stress on household finances. That is likely to lead to rising defaults in the months ahead, he warned.
The credit data the BoE collects from regulated firms has
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