Bank of England ‘keeping close eye on consumer spending’, says Carney

Governor says consumers are powering economy through Brexit uncertainty but debt is increasing

The Bank of England is keeping a close watch on consumer spending amid signs households are dipping into their savings and amassing debts to keep spending in the face of rising inflation.

Mark Carney, the Bank governor, said consumer spending had held up since last summer's vote to leave the EU but he reiterated a warning that living costs were likely to rise on the back of a weak pound and squeeze households' real incomes.

Related: UK credit binge approaching levels not seen since 2008 crash