UK banks expect fall in demand for loans

Major British lenders expect household and business demand for loans to slow after last month’s vote to leave the EU, the Bank of England has said, in another sign the economy may be slowing.

Based on conversations with lenders after the June 23 vote, the central bank said banks expected businesses large and small to delay new investment and company takeovers.

Lenders also expected households’ demand for mortgages to fall over the next three months, despite a sharp rise in the run-up to the referendum.