UK Banks Embrace Weak UK Sentiment, Mortgage Drags: BI Replay

BI survey on a sample of 1,000 UK individuals shows weak consumer sentiment, which may lead to banks' lending growth slower than already timid consensus. The expectation of a slower cut to Bank of England's policy rates could extend the pressure on the mortgage volume and the churn to time deposits. Credit quality looks healthy overall but the cost-of-living crisis is exploiting the most stressed households' financial vulnerability.