Less lending means rate cut likely

Mon, 10 Nov 08

Total private credit growth picked up in September by 0.7 per cent as bank lending to business grew 1.1 per cent, up from 0.7 per cent in August. The amount of money loaned to individuals contracted by 0.3 per cent in September. Personal lending is set to contract further with the withdrawal of GE Money and GMAC from the lending market. Economists said the numbers added weight to the case for a rate cut on Tuesday of about 0.5 per cent.