Andrew Wishart of Bank of Berenberg said that the strong increase in Bank of England credit in November showed that the impact of policy uncertainty on consumption and investment was lower than expected on the eve of the budget. Consumer loans increased to £6.6 billion in the same month, while mortgage performance was also very steady. Despite this, Wishart expects housing price growth to remain slow in the short term. Strong credit growth does indicate that inflation may prolong, but the current monetary policy stance may dampen prices. Wishart also pointed out that a cooling economy should also control inflation, thus allowing the Bank of England to cut interest rates from 3.75% to 3.00% this year.

Andrew Wishart of Bank of Berenberg said that the strong increase in Bank of England credit in November showed that the impact of policy uncertainty on consumption and investment was lower than expected on the eve of the budget. Consumer loans increased to £6.6 billion in the same month, while mortgage performance was also very steady. Despite this, Wishart expects housing price growth to remain slow in the short term. Strong credit growth does indicate that inflation may prolong, but the current monetary policy stance may dampen prices. Wishart also pointed out that a cooling economy should also control inflation, thus allowing the Bank of England to cut interest rates from 3.75% to 3.00% this year.