BoE urged to show more support for business lending

BCC urges Bank of England to increase efforts to support business lending.

The British Chambers of Commerce (BCC) has called on the Bank of England (BoE) to step up its efforts to encourage business lending, which could lead to easier access to commercial mortgages and similar products for borrowers.

According to the BCC, it is important for the BoE's interest rate-setting body, the Monetary Policy Committee (MPC), to help deliver the stability that businesses need at this stage of the economic recovery.

There have been some calls for an increase in the central bank's interest rate, which BCC chief economist David Kern described as "unwelcome" and a potential threat to commercial investment plans.

Mr Kern also pointed out that the BoE could help the business community - particularly growing firms and smaller enterprises - by supporting lending in general, as many organisations are still struggling to secure credit.

"Access to finance remains a key issue in achieving a sustainable recovery, and the Bank could play a key role in rectifying this gap," he said.

The MPC this month voted to keep the base interest rate at its record low of 0.5 per cent, where it has been since March 2009.

15th April 2014