Bank of England household debt fears: Positive Money response

Responding to Bank of England deputy governor Jon Cunliffe’s warnings about household debt this morning, Fran Boait, executive director of Positive Money said:“After a decade of stagnant wage growth, families have been forced to keep up with rising costs with borrowing. This mountain of debt makes the economy extremely vulnerable to rising interest rates, so the Bank of England is right to be worried.“With limited room for manoeuvre on interest rates, the Bank of England will need new tools for the next downturn. This could include forms of monetary financing such as ‘helicopter money’, which would see the central bank distributing funds directly to households, allowing them to pay down debts and increase financial resilience.”
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Positive Money campaigns for a money and banking system which supports a fair, democratic and sustainable economy. Set up in the aftermath of the financial crisis, Positive Money is a not-for-profit company funded by charitable trusts and foundations, as well as small donations from its network of over 65,000 supporters.