« Daily Debt Tips Home
Expert has “cautious” outlook for lending in 2009
Monday, January 5th, 2009The availability of credit may not improve in 2009, it has been suggested.
According to Charles Davis, economist at centre for economics and business research, unemployment will continue to rise this year and economic growth will be stagnant, with no guarantee of an improvement in lending levels from banks.
"I would remain cautious on the outlook for lending in 2009 … towards the end of next year we [will] maybe start to see some improvement in the City," he suggested.
Mr Davis stated it remains to be seen as yet whether the recapitalisation of banks has been successful, although he noted that interbank lending rates have dropped.
Louise Cuming, head of mortgages at moneysupermarket, recently said that lenders will focus on supporting borrowers suffering from debt management problems in 2009.
She added that there will be "no miraculous u-turn" in the low borrowing levels experienced last year.
