Forecasting consultancy EY Item Club has said that high interest rates will keep bank lending subdued this year.
It reckoned that bank lending to businesses would rise by only 0.8% this year, albeit reversing a 2.1% contraction last year.
Weak demand for credit among corporations is expected to be driven by sluggish domestic economic growth and by borrowing costs remaining restrictive for much of the year.
The expectation comes despite predictions that the Bank of England will lower the base rate three times this year from 5.25%, starting in June.
