Belfast Telegraph

Bank of England set to keep tabs on account deficit

By Staff Reporter

Britain's swollen current account deficit will be kept "under close review" by the Bank of England amid fears it could risk investors turning against the country.

A record of the Bank's latest Financial Policy Committee meeting showed the deficit among a list of key risks currently facing the economy.

It added that risks from housing and household debt had not increased, but noted the increasing share of interest-only mortgages in buy-to-let mortgage lending.

Latest figures from the Office for National Statistics (ONS) showed that the current account deficit swelled to 5.5% of gross domestic product (GDP) last year, the highest level since records began.

It includes the gap between imports and exports as well as the difference between UK earnings on investment abroad and foreign earnings on investment in the UK.

Belfast Telegraph