Bank of England policymakers will act "sooner rather than later" to curb credit growth, if the recent rise in household debt starts to gather pace, a top official has said.

Sir Jon Cunliffe, the Bank's deputy governor for financial stability, said consumer debt remained "large by historic standards”, leaving the UK economy "vulnerable to shocks".

He said the Financial Policy Committee (FPC), which is in charge of maintaining financial stability, would consider taking action if credit started to grow faster than the economy.

"Given the vulnerability that already exists and the powerful drivers in the UK, particularly the housing market, if credit began again to grow faster than GDP, I would want to think about action to manage the financial stability risks sooner rather than later," he told an audience in London.