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(CEP News) - According to the Bank of England, second quarter lenders in the UK have reported a further reduction in the availability of credit to households and firms with further tightening expected over the next three months.
"Lenders reported that the decline in credit availability was driven by concerns about the economic outlook and a reduced appetite for risk," read the report. "These factors were expected to contribute to a further tightening in credit availability." Indeed, the survey also suggests that banks expect default rates to rise further in lending to both households and firms. The demand for secured home loans declined in the second quarter while mortgage refinancing moved higher and is expected to continue rising. By Erik Kevin Franco,
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, edited by Cristina Markham,
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