Markets too negative warns Bank of England

Markets too negative warns Bank of England


The Bank of England has warned that because financial markets have remained so pessimistic, banks could cut loans to consumers even further which would have an entirely negative effect on the economy. Whereas prior to the crunch, banks risk assessments in terms of lending was too low, now it veers on too high.

BOE has noted that confidence is slowly returning to the market, but if conditions continue to remain tight banks are susceptible to negative press attention which has a knock on effect on consumer confidence and other banks lending to one another.

Lucy Trueick

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