LONDON (Reuters) – British lenders are planning to additional tighten their grip on shopper lending which has already been slowing in current months, a Bank of England survey confirmed on Thursday.
The BoE, which has been urging banks to keep away from dangers of their lending to households, mentioned expectations amongst lenders in regards to the availability of unsecured lending over the subsequent three months pointed to a pointy slowdown in credit score.
British households are below stress from rising inflation for the reason that Brexit vote in 2016 and weak wage development.
Separate knowledge from the BoE final week confirmed British shoppers elevated their borrowing by the smallest quantity since mid-2015 within the three months to November, including to the indicators that households are slowly reining in spending.
Lenders in Thursday’s survey mentioned they anticipated to reject the most important share of unsecured shopper mortgage functions for the reason that fourth quarter of 2008.
They additionally anticipated the supply of mortgages and loans to companies to stay unchanged over the subsequent few months.
However, they anticipated demand for loans for capital funding from companies to stay weak.
Reporting by Andy Bruce, modifying by William Schomberg