020 7898 0500Sterling hit a fresh seven-month low against the dollar yesterday as the Bank of England’s Deputy Governor, Jon Cunliffe, said he is concerned about families with high debt levels. Cunliffe warned that if the UK economy falls into a recession then households with substantial debt would be badly affected. In addition, if interest rates were raised, then mortgage debt – which accounts for around 75% of total UK household debt – would be more expensive to repay.
Today is extremely busy for UK economic data, with the all-important final reading of the GDP growth rate for the first quarter of 2018. This will give us a real indication of how the British economy has fared to date. We will also see mortgage approvals, business lending and Gfk consumer confidence. We could see some sterling volatility throughout the day.
