Economics Weekly by Lloyds TSB

The Bank of England’s (BoE) latest monthly Trends in Lending report was published last week. The report provides a timely assessment of lending conditions in the UK, and provides an update on the BoE’s recently released Q3 Credit Conditions survey.

Credit conditions have eased, but challenges remain

The Bank of England’s (BoE) latest monthly Trends in Lending report was published last week. The report provides a timely assessment of lending conditions in the UK, and provides an update on the BoE’s recently released Q3 Credit Conditions survey. Below, we examine the recent BoE surveys and assess the extent to which credit constraints have eased. With the UK FTSE-100 recently hitting a new twelve-month high and spreads in the interbank markets having dropped to their pre-crisis levels, sentiment in the financial markets have clearly improved. But a prerequisite for any enduring financial or economic recovery is a sustained rise in the supply of and demand for credit.

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