Business lending sees significant drop

New figures have indicated that bank lending to smaller firms has fallen.

According to the Bank of England, the money supply growth fell by 0.9 per cent in September compared with the month before.

Lending was down by 1.7 per cent over the quarter as a whole, its lowest level since 1998.

Analysts believe that the figures suggest that the Bank of England’s quantitative easing programme has yet to stimulate credit, and that more money will be needed to prime business lending.