2015 likely to see recovery in corporate borrowing
Commenting on the latest Bank of England Credit Conditions Survey, Ian Stewart, chief economist at Deloitte, the business advisory firm, said:
“Credit conditions for large and medium sized businesses are continuing to improve and banks report growing demand for credit from companies driven by M&A activity, commercial real estate and investment spending.
“This is consistent with our latest survey of chief financial officers, who start 2015 with risk appetite above the long-term average and predicting a strong year for business investment.
“The weak spot is the small firm sector which has seen a downturn in credit availability and demand in the last quarter.
“But with UK interest rates likely to stay lower for longer, monetary conditions are set to remain easy for some time to come. After declining for more than five years, 2015 is likely to be the year in which corporate borrowing finally starts to recover.”