[lenders] "are right to be extra careful today in light of futureThe central bank uses the credit markets to stimulate the economy; and half of that equation is the supply side, i.e., lending. For the central bank to tell lenders that they are “right” to be cautious is more likely to get banks not to lend rather than to lend.
uncertainties, with unemployment and repossessions continuing to rise."
To be sure, Barker is right, and don't bankers know it! However, to pat banks on the back for being tight with the loanable funds seems like a central banker mistake to me.