Bank of England Money & Credit - Target Group

30 June 2025

Melanie Spencer, sales and growth lead at Target Group, part of Tech Mahindra, says:

“After a few quiet months it’s good to see approvals rising. That will help lighten the shadow these statistics have been casting over the market’s outlook.

“It’s too soon for optimism though. Yes, some lenders have started loosening criteria a little. But recently, we have seen inflation, including owner-occupied housing costs, the so-called CPIH, hitting 4 per cent. And the RPI, the Retail Prices Index, which sets the costs of many business contracts and the charges on the index-linked portion of our national debt, has risen to 4.3 per cent. On any rational assessment, inflation is running at double the target rate. That may well lead to some debate at the Bank about increasing interest rates or, at the very least, making fewer cuts, later. That will mean limited relief for borrowers in the future.”