Net borrowing by British consumers was the highest in nearly seven years in November and lenders approved the most mortgages since June, according to Bank of England data that adds to signs that households are mostly coping with high interest rates.
Consumer borrowing grew by a net 2.0 billion pounds ($2.5 billion), the most since March 2017 and more than any forecast in a Reuters poll of economists, after an increase of 1.4 billion pounds in October.
Official data published last month showed much stronger-than-expected sales by retailers in November, boosted by Black Friday seasonal discounts.
The BoE data showed loans for home purchases totalled 50,067 in the month, higher than a median forecast of 48,500 in the Reuters poll.
The British central bank raised interest rates to a 15-year high of 5.25% in August and has said it expects to keep them elevated for “an extended period of time” to ensure that the risks posed by the surge in inflation in 2022 are snuffed out.
