Net lending slowed in March

The scale of lending by financial service firms in the UK increased at a slower rate during March than the previous month, according to the latest data.

Figures from the Bank of England show that there was an extra £8.2 billion lent last month around the country but this increase in activity was less sharp than the average for the past six months.

Borrowing activity in most areas of the economy slowed its rate of growth but appetite for credit card debt appears to have remained strong as the rise in this kind of lending increased at the same pace as in February.

Overall, net consumer credit was worth £1.2 billion more in March than the previous month, while 57,000 loans were approved for purposes other than house buying or remortgaging, the bank reports.

Earlier this month, the Bank of England opted to reduce the base rate of interest by a quarter point for the second time so far in 2008.