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

Bank of England holds rates at 3.75% as it waits for 'cloudy' data to clear

Bank of England holds rates at 3.75% as it waits for 'cloudy' data to clear

'Wait and see approach'

Michael Nelson
clock 05 February 2026 • 2 min read
Kevin Warsh's surprise pick for Fed chair forces investors to rethink 'dollar debasement'

Kevin Warsh's surprise pick for Fed chair forces investors to rethink 'dollar debasement'

'Catalyst' for rapid repricing

Alex Sebastian
clock 04 February 2026 • 4 min read
Partner Insight: A new VCT landscape - what advisers need to know after the Budget

Partner Insight: A new VCT landscape - what advisers need to know after the Budget

For professional advisers and paraplanners only. Not to be relied upon by retail clients.

Toyin Oyeneyin, Tax Product Specialist, Octopus Investments
clock 19 January 2026 • 5 min read