The big news yesterday was the warning BoE’s FPC issued regarding the potential consumer credit losses. In their conclusions from last week’s meeting, FPC warned that one in five consumer credit loans could well be written off if the UK falls into a recession.
In addition, they sounded a warning about the possible risks Brexit poses to the UK’s economic stability. They said “The FPC is considering in particular risks arising from: discontinuity of cross-border contracts, in particular insurance and derivatives; restrictions on sharing of personal data between the European Union and United Kingdom; and restrictions after Brexit on cross-border banking, central clearing and asset management service provision.”
Today we will see the release of UK mortgage approvals for August, while tomorrow Nationwide will release their housing prices data. However, the chief focus will be on Friday, when the UK GDP growth rate and consumer confidence are released.