Thursday, July 03, 2008
Credit conditions tightening
Posted by David Smith at 10:00 AM
Category: Thoughts and responses

Apart from Marks & Spencer, which has been making the headlines, there is more slowdown evidence from the Bank of England. Its latest credit conditions survey, here, shows that lenders tightened credit to households and businesses in the second quarter and expect to do so further in the third. Mortgages in particular are the subject of an intense squeeze.

Also from the Bank, the new deputy governor Charlie Bean, warned in his appointment evidence to the Commons Treasury committee that the Bank faces its most challenging time and cannot assume that the oil price rise that has so complicated things will quickly go away. With manufacturing, construction and services all feeling the squeeze, the downturn is gathering pace.