"It is still too early to comment on whether the BoE’s asset purchases have been effective. But the renewed weakness in bank lending - particularly to businesses - at the start of the current quarter will come as a disappointment to the MPC. The last inflation report singled out weakness in lending to firms as the main reason for its bleaker assessment of growth prospects over the coming year. The inflation report hinted that more QE may be required when it projected an undershoot in its inflation forecast. We expect the MPC to vote on a further £25bn of asset purchases at this Thursday’s policy meeting. The bank lending figures for April give this view some additional support."
JP Morgan (UK) report out today.....certainly doesn't fill one with confidence in the UK situation!!!
