Tighter Credit Conditions Will Weaken UK Economy And Raise Default Rates by Lloyds TSB (Forex)

The latest UK credit conditions survey from the Bank of England made grim reading. It suggested that credit conditions will tighten even further for UK households and companies in the next three months, after a pronounced tightening in the three months to March 2008, which itself was more than was expected at the end of 2007.

Credit conditions report shows supply of credit being restricted…

The latest UK credit conditions survey from the Bank of England made grim reading. It suggested that credit conditions will tighten even further for UK households and companies in the next three months, after a pronounced tightening in the three months to March 2008, which itself was more than was expected at the end of 2007. At the same time, the survey reported that lenders also intended to widen spreads, effectively raising the cost of borrowing to households and companies. Thus it was no surprise that the report also showed that a greater number of lenders expected default rates on loans in the UK to rise, after been higher than expected in the previous three month period.

 

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