Annual consumer credit growth slowed to 6.6% in December, reflecting the continuation of relatively weak flows of new lending. The net monthly flow in December fell to £0.7 billion, reflecting less extra borrowing on credit cards.

UK businesses increased their borrowing through bank lending and commercial paper in December. But they made large net redemptions of bonds in for the second month in a row, contrasting with strong issuance earlier in the year.

Households significantly increased their deposits in interest-bearing instant access savings accounts in December, contributing to an increase in households’ money holdings.