Credit growth has picked up sharply in recent months, sparking fears of another credit bubble as interest rates stay at a record low of 0.5pc for a seventh straight year.
Bank of England data showed borrowing on credit cards and overdrafts grew at the fastest pace in a decade at the start of this year as consumers took advantage of low rates.
Mark Carney, the Bank’s Governor, has insisted that Britain’s recovery is sustainable and not “debt-fuelled”. However he warned in January that high household debt levels still posed an “indirect” threat to the economy.
He said policymakers remained “vigilant” to risks and stood ready to act if there were signs that credit growth was becoming unsustainable.
The Financial Policy Committee, which is in charge of UK financial stability, has already taken steps to rein-in mortgage lending and is likely to be given powers to curb the buy-to-let property market.
Sir Jon Cunliffe, the Bank’s deputy governor for financial stability,has said policymakers would move quickly to quash any rapid growth in credit.