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Does the cost of living crisis explain the leap in borrowing?

Bank of England stats out Monday show the use of credit cards is soaring.

This chart, from the Bank of England’s latest release on money and credit, has piqued our interest:

The chart, published Tuesday, shows net consumer borrowing is now back at the level in the halcyon days of February 2020. Somewhat surprising given what’s happening geopolitically right? People certainly aren’t saving for a hard rainy day.

If we close in on credit card borrowing, the figures are truly remarkable. The leap in net borrowing is the highest since the BoE began recording the data in the early 1990s.

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