LONDON (MNI) – Foreign investors were net buyers of gilts for the
third month in a row in September, according to data from the Bank of
England.
The BOE’s Bankstats figures show non-residents increased their gilt
holdings by stg1.839 billion in September after having increased their
holdings by stg5.572 billion in August and stg9.371 billion in July.
The data show that foreign investors reduced their holdings of UK
Treasury Bills, cutting their exposure by stg362 million after having
lowered it by stg336 million in August and stg409 million in July.
The data also show domestic investors increased their holdings of
gilts by stg3.556 billion in September after having cut their holdings
by stg3.068 billion in August.
Seperate data from the BOE showed lending rates falling only
slightly on the month, suggesting the BOE’s Funding for Lending Scheme,
introduced in August, has so far had only marginal success in bringing
down the cost of credit.
The effective rate on the stock of outstanding secured loans
decreased by 1 basis point to 3.36% in September and the new secured
loan rate fell by 7bps to 3.77%. The rate on outstanding unsecured
personal loans decreased by 2bps to 7.72% in September but remained
above the 7.70% level seen in July.
The rate paid on households’ outstanding time deposits remained at
to 2.89% in July although the rate for households’ new time deposits
decreased by 26bp to 2.75%. The lending rate on secured loans slipped to
3.36% from 3.37% in August, and fell from 3.84% to 3.77% for secured new
business loans.
-London newsroom: 4420 7862 7491 e-mail: wwilkes@marketnews.com
[TOPICS: M$B$$$,M$$BE$]