Record fall in borrowing reignites QE debate

Consumer credit, excluding mortgage borrowing, fell by £377m in December, the biggest monthly drop since records began in 1993, the Bank said on Tuesday. The drop was due to a fall in borrowing on overdrafts, bank loans and hire-purchase agreements. Economists said consumers were tightening the purse strings in the tough economic conditions, and predicted a further round of quantitative easing when the Bank's Monetary Policy Committee meets in February. "The fall in consumer credit reflects individuals' reluctance to take on more debt in a tough economic environment," said Nida Ali...