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.”