The Bank’s report, external also says that lower income households, including renters, are likely to be more exposed to higher energy prices.
“They spend a larger share of their income on essentials, limiting their ability to adjust spending in response to higher prices,” it said.
However, overall, the report suggested that household finances remained resilient “even in a challenging external environment”.
Household debt remained low relative to historical averages.
Although some vulnerable, low-income households remained more exposed, it said debt was unlikely to lead to sharp reductions in buying by consumers.
Elsewhere in the report, the Bank said rapid advances in AI had led to heightened risks over cyber attacks.
It also said valuations of AI stocks had become “more stretched” amid concerns of a bubble. The Bank sounded a similar warning in December.
