New Q2 figures published today by the Bank of England, confirm company deposits are growing at an inadequate pace and that lending to businesses has recorded an outright decline. Commenting, David Kern, Chief Economist at the British Chambers of Commerce (BCC), said:
"These figures highlight the serious pressures facing the productive sector of the economy. Despite favourable retail sales data and the strength of the stock market, we must not be lulled into a false sense of security.“It is important to nurture signs of confidence in the economy, and to counter the threat of a relapse. We continue to urge the MPC to increase the pace of QE, well beyond £125 billion, so as to improve access to finance for viable companies, and particularly small firms."