Banks could soon be lending again

Grovelawn Financial News 02/07/2009

← New mortgage numbers increase to new high | News For July 2009 | Final salary pension retirements in decline →

Recession could be past the worst

After a set of more optimistic figures regarding UK banks’ view on lending to clients appear to be more favourable, the newest member of the Bank of England’s’ Monetary Policy Committee has suggested the worst of the recession could be over.

The former advisor to Morgan Stanley, David Miles, suggested the worst of the “very deep recession” was over, highlighting the fall in the value of sterling, which could help improve exports and the departure of foreign banks from the UK.

He also hinted at the prospect of an increase in interest rates and a reversal of the Bank’s quantitative easing. The Bank is putting almost £125 billion into the economy buying back toxic debts from other lenders as it tries to stimulate the economy.

In the latest survey of credit conditions, published on a quarterly basis, there was an indication that lenders are expecting make credit more freely available to companies and consumers over the next three months.

The Bank of England said it expected the demand for loans to be limited but they fully expected banks to be making credit more freely available. A spokes man for the bank said “We will not know for sure whether QE has been directly effective in supporting nominal demand for growth for some time and a definitive assessment right now would certainly be premature”

← New mortgage numbers increase to new high | News For July 2009 | Final salary pension retirements in decline →

The information contained within these news articles may include reference to taxation, legislation, regulation and other issues or concerns that may no longer apply.

Your property may be repossessed if you do not keep up repayments on your mortgage.

For more information on how we are paid for mortgages please click here.

Grovelawn Financial Services, Gemini House, Hargreaves Road, Swindon, Wilts, SN25 5AZ — T: 0845 458 2633 — F: 01793 706 533 — E: enquiries.ignore@grovelawnfinancial.remove.co.uk