Money supply and bank lending must strengthen for any recovery to be sustained
29/07/09 | 15:25
Bank of England figures show that UK companies repaid more bank loans than they have taken in the year to June. Commenting, David Kern, Chief Economist at the British Chambers of Commerce (BCC) said:
“Unless money supply and bank lending strengthen, it will be difficult for any economic recovery to be sustained.
“These weak lending figures reinforce the need for the MPC to boost its quantitative easing programme beyond £125 billion. It is also desirable for the Bank of England to increase the proportion of corporate bonds that it purchases.”
Ends
Media Contact:
Sam Turvey
Tel: 020 7654 5813
Email: s.turvey@britishchambers.org.uk
Notes to Editors:
Lending to businesses fell 1.2% in the 12 months to June.
According to the data, lending to firms - such as loans and overdrafts - dropped £1 billion between May and June, or 0.2%.
The British Chambers of Commerce (BCC) is the National Voice of Local Business.
The BCC sits at the heart of a powerful nationwide network of Accredited Chambers of Commerce serving business across the UK, which employ over five million people.