-BOE: UK Jun house purchase approvals 44,192 vs 50,544 May
-BOE: Non-residents sold net stg7.261bn gilts in Jun
-BOE: Urges care over Jun data due extra Jubilee bank holiday
LONDON (MNI) – Mortgage approvals slumped in June, likely driven
down by the exceptionally wet weather and the extended Jubilee weekend.
Bank of England data showed mortgage approvals plunged to 44,192 in
June from 50,544 in May, hitting their lowest level since December 2010.
The BOE, however, said care should be taken in interpreting the data,
with the June 4 and 5 Jubilee national holidays not automatically taken
into accounts in its seasonal adjustment process.
The 44,192 outturn was well below analysts’ median forecast for a
48,500 outturn.
Net mortgage lending rose just fell Stg355 million on the month in
June, while net unsecured borrowing dipped, with net consumer credit
dropping to Stg635 million from Stg774 million in May.
The broad money data showed patches of modest growth, with M4
ex-IOFCs, which excludes economically irrelevant intra-financial sector
transactions, rising 0.5% on the month and 2.9% on a one quarter/three
month annualised basis and 3.5% on a four quarter/12 month basis.
M4 on the year, however, fell 5.2%, the largest fall on record.
The BOE has launched a raft of credit easing measures to try and
get credit flowing to households and smaller businesses through the bank
channel and these data, albeit distorted by one off effects, show how
weak some areas of credit growth have been.
The BOE June Bankstats data showed non-residents were heavy sellers
of gilts in June, just ahead of the relaunch by the BOE of quantitative
easing.
Non-residents sold a net Stg7.161 billion of gilts in June, the
largest net sales since December 2011.
-London newsroom: +44 207 862 7491 email: drobinson@marketnews.com
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