Commenting on the evidence session with members of the Bank of England’s Monetary Policy Committee (MPC), the Chairman of the Treasury Select Committee, Andrew Tyrie MP, said:
The Treasury Select Committee has been concerned for a long time about the shortage of lending to the SME sector and whether the Funding for Lending Scheme is effectively combating that shortage.
It is clear that the Bank of England remains concerned also.
The lack of lending to SMEs is inhibiting economic growth in the UK.
The MPC is right to be looking at additional tools, or changes to existing tools, that could help.
Some of the proposals we heard today, such as moving to negative interest rates, are radical; others are not. They all warrant careful consideration.
The evidence session with the Bank of England Deputy Governors and MPC members was held on 26 Februay 2013.