The Bank of England have release their Q4 credit conditions report

  • Significant reduction in capital investment and commercial real estate led to main changes in corporate lending demand

  • Large company demand for bank borrowing unchanged in Q4 vs big fall in Q3

  • Saw a significant drop in demand for borrowing by SME's, expecting another fall for small firms in Q1

  • Demand for buy to let mortgage lending increased significantly in Q4, expected to fall in Q1

  • Banks are expecting the availability of unsecured household credit to decrease slightly in Q1

  • Banks predict a slight increase in availability to mortgage lending in Q1

  • Default rates on secured household lending fell in Q4

It's no real surprise to see investment falling with Brexit hanging over the UK like a storm cloud.