-BOE: OCT M4 Ex-IOFCs +0.4% m/m; +5.4% 1q/3m ann.; +4.1% 4q/12m
-BOE: UK Oct M4 +0.2% m/m; -3.2% y/y; m4 lending -5.0% y/y
-BOE: Oct Effective rates unsecured loans 7.72% vs 7.64% Sep
-BOE: Oct Effective rates secured loans 3.39% vs 3.36% Sep
London (MNI) – Underlying broad money growth slowed in October on
the Bank of England’s favoured measure while outstanding bank lending
rates rose, but fell on new secured business, with the BOE trying to
boost credit flow through its Funding for Lending Scheme.
The BOE’s data showed bank’s effective interest rates, the rates on
the stock of lending, rose on secured loans on outstanding business to
3.39% in October from 3.36% in September, hitting their highest level
since August 2011. On new secured business, however, they fell to 3.74%
from 3.77%, suggesting the FLS is at least driving down rates on the
most recent lending.
On unsecured loans, however, effective interest rates rose to 7.72%
in October from 7.64% in September and they rose on new business to
7.13% from 6.72%.
The BOE’s favoured M4 measure, M4 ex-IOFCs, which excludes the
economically irrelevant intra-financial sector transactions, showed
broad money growth rose by 0.4% on the month and was up 5.4% on a three
monthly annualised basis and up 4.1% on a four quarter/12 month basis.
These rates were down from the 7.5% 1Q/3m and 4.2% 4Q/12m seen in
September.
-London newsroom: 4420 7862 7491 e-mail: drobinson@marketnews.com
[TOPICS: M$$BE$,MABDS$]