Banks right to lend cautiously: BoE's Barker

The British government's strategy of encouraging British banks to lend received a setback on Wednesday after Kate Barker, a member of the Bank of England's Monetary Policy Committee (MPC), said that she could understand their reluctance to lend.

Mortgage Introducer, an industry website quoted Barker as saying on 20 April that banks "were right to be cautious" given falling house prices, which have dropped by an average 20% over the past year, and rising unemployment. The remarks were publishe