,
6 tweets,
2 min read
Read on Twitter
Quarterly bulletins from @bankofengland are always worth a read. This article looking at NMG survey is interesting. bankofengland.co.uk/-/media/boe/fi…
To start with, here’s a chart showing their reckoning that 1% increase in Bank Rate boosts household income by 0.4% but cuts consumption by 0.2% through ‘cash-flow’ channel. 
Proportion of UK households with very high mortgage debt is still elevated, although off GFC peaks.
But it would take 3% hike in mortgage rates to return proportion of hhlds with debt service ratio >40% seen on average in ‘97-06 period.
Still, a fair proportion of mortgagors reckon they’d need to chg behaviour in response to smaller rate hikes
But more financial distress evident when looking away from those with a mortgage
