Almost a decade of improvements in household finances has started to be unpicked in the year since the EU referendum, according to the Bank of England. This could fuel growing concerns over the strength of household finances over the coming years. Only around 2.5% of homes with a mortgage would need to take action by spending less or working more, it said. Bank of England data shows personal debts have risen to levels unseen since the financial crisis, reaching more than £200bn. The Bank has been watching for rising pay levels to justify its rate hike, believing that higher wages tend to spark a spiral of increasing prices.

Source: The Guardian December 15, 2017 15:37 UTC