–BOE: Q2 Corporate Credit Available Net 7.1% Vs 21.9% in Q1
–BOE: Q2 Corporate Credit Available Next 3m Net 6.5% vs 22.7% Q1
–BOE: Q2 Secured Household Credit Available Net 6.3% vs 1.3% Q1
–BOE: Q2 Secured Household Credit Next 3m Net -11.4% vs 3.2% Q1
–BOE: Q2 Unsecured Household Credit Available -0.6% vs -1.5% Q1
–BOE: Q2 Unsecured Household Credit Next 3m 7.8% Vs 16.1% Q1
London (MNI) – Corporate credit and secured household credit
continued to grow in the second quarter, but the pace of growth in
corporate credit slowed markedly from the first quarter, according to
the latest Bank of England survey.
The BOE’s Q2 Credit Conditions Survey showed that corporate credit
availability expanded in Q2 and was expected to increase again in the
third quarter, but at nothing like the pace seen in the first quarter.
Secured household credit, while expanding in Q2, is expected to decline
in Q3.
The BOE survey is based on weighted, net percentage balances of
responses from lenders. The net corporate credit available balance in Q2
came in at 7.1%, down from 21.9% in Q1. Corporate credit expected to be
available in the next three months stood at a net 6.5%, down from 22.7%
in Q1.
A softening in corporate credit growth will weighing on broad money
growth, with BOE Governor Mervyn King citing weakness in money growth as
one fundamental factor suggesting UK prices cannot continue to rise.
Secured household credit available in Q2 rose to 6.3% from 1.3% in
Q1 but was expected to fall to -11.4% in the next three months. The BOE
reported demand for household secured lending for house purchases had
fallen in the past three months while demand for remortgaging had risen.
Unsecured household credit available rose to a net -0.6% in Q2,
just up from -1.5% in Q1.
–London newsroom: tel+44 207 862 7491; email: drobinson@marketnews.com
[TOPICS: M$B$$$,M$$BE$,MABPR$,MT$$$$]
