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

Laith Khalaf: Rachel Reeves has got that 'kitchen sinking' feeling

Laith Khalaf: Rachel Reeves has got that 'kitchen sinking' feeling

The big question now is what Rachel Reeves intends to next

Laith Khalaf
clock 15 August 2024 • 5 min read
Rachel Reeves urges financial regulators to stimulate UK economic growth

Rachel Reeves urges financial regulators to stimulate UK economic growth

Pushing regulators to boost international competitiveness of the UK economy

Linus Uhlig
clock 13 August 2024 • 2 min read
Bank of England cuts interest rates by 25 basis points to 5%

Bank of England cuts interest rates by 25 basis points to 5%

'Welcome relief for borrowers, the road remains tough for savers and retirees'

Linus Uhlig
clock 01 August 2024 • 4 min read