BoE detects tightening in credit
LONDON: In its latest quarterly bulletin, the Bank of England warns that weak bank lending is likely to "dampen the recovery" in the UK economy.
The report points out that since the flow of new bank lending to UK households and businesses fell sharply in mid-2007, there has been an ongoing debate over whether a fall in demand for credit, or a fall in supply of lending funds, is to blame. However, the bank refers to "evidence of a substantial and persistent tightening in credit supply conditions from mid2007?, albeit alongside weaker credit demand. -PB News