22 March 2007
Demand for personal loans during February this year fell, according to the latest figures released by the Major British Banking Groups.
The amount of unsecured personal lending saw a decrease of £0.2 billion over the course of the month, down from the £0.3 billion witnessed in January.
David Dooks, Director of Statistics at the British Bankers' Association, commented: "Consumer appetite for credit remains very subdued. There was little personal loan demand."
A breakdown of consumer credit figures show that of the £187 million decrease, £183 million of this was made up by personal loans and overdrafts.
January had witnessed a rise of £189 million on personal loans, suggesting the immediate financial strain imposed in the aftermath of Christmas.
Meanwhile, the Bank of England published the latest minutes from its Monetary Policy Committee meeting.
The decision to keep interest rates at 5.25% earlier in the month was supported by an 8-1 split.
The next interest rate decision will be announced on April 5th.
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