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Credit spreads: capturing credit conditions facing households and firms

Author

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  • Butt, Nick

    (Bank of England)

  • Pugh, Alice

    (Bank of England)

Abstract

Changes in credit conditions have been one of the main headwinds affecting the UK recovery since the financial crisis. The likely path of credit spreads is a key determinant of the Monetary Policy Committee’s projections for output and inflation. This article explains how staff at the Bank of England calculate measures of credit spreads which can be used to help inform the Monetary Policy Committee’s central macroeconomic projections.

Suggested Citation

  • Butt, Nick & Pugh, Alice, 2014. "Credit spreads: capturing credit conditions facing households and firms," Bank of England Quarterly Bulletin, Bank of England, vol. 54(2), pages 137-148.
    • Handle: RePEc:boe:qbullt:0138
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    References listed on IDEAS

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    Cited by:

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    2. Shakir, Tamarah & Tong, Matthew, 2014. "The interaction of the FPC and the MPC," Bank of England Quarterly Bulletin, Bank of England, vol. 54(4), pages 396-408.
    3. Hans R.A. Koster & Edward W. Pinchbeck, 2022. "How Do Households Value the Future? Evidence from Property Taxes," American Economic Journal: Economic Policy, American Economic Association, vol. 14(1), pages 207-239, February.
    4. David F Hendry & John N J Muellbauer, 2018. "The future of macroeconomics: macro theory and models at the Bank of England," Oxford Review of Economic Policy, Oxford University Press and Oxford Review of Economic Policy Limited, vol. 34(1-2), pages 287-328.
    5. Beau, Emily & Hill, John & Hussain, Tanveer & Nixon, Dan, 2014. "Bank funding costs: what are they, what determines them and why do they matter?," Bank of England Quarterly Bulletin, Bank of England, vol. 54(4), pages 370-384.
    6. Bell, Venetia & Pugh, Alice, 2014. "The Bank of England Credit Conditions Survey," Bank of England working papers 515, Bank of England.
    7. Campbell, Gareth & Coyle, Christopher & Turner, John D., 2016. "This time is different: Causes and consequences of British banking instability over the long run," Journal of Financial Stability, Elsevier, vol. 27(C), pages 74-94.
    8. Harimohan, Rashmi & Nelson, Benjamin, 2014. "How might macroprudential capital policy affect credit conditions?," Bank of England Quarterly Bulletin, Bank of England, vol. 54(3), pages 287-303.
    9. England, David & Hebden, Andrew & Henderson, Tom & Pattie, Tom, 2015. "The Agencies and 'One Bank'," Bank of England Quarterly Bulletin, Bank of England, vol. 55(1), pages 47-55.
    10. Anderson, Gareth & Bunn, Philip & Pugh, Alice & Uluc, Arzu, 2014. "The potential impact of higher interest rates on the household sector: evidence from the 2014 NMG Consulting survey," Bank of England Quarterly Bulletin, Bank of England, vol. 54(4), pages 419-433.
    11. Cloyne, James & Thomas, Ryland & Tuckett, Alex & Wills, Samuel, 2015. "A sectoral framework for analyzing money, credit and unconventional monetary policy," Bank of England working papers 556, Bank of England.

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