London (MNI) – Net consumer credit hit a record low in December and
overseas holding of Gilts plunged, while mortgage approvals picked up,
according to Bank of England data.
The BOE figures showed net consumer credit fell by Stg377 million,
the largest monthly fall on record. Broad money supply data also showed
record monthly falls, hit by a sharp fall in deposits from securities
dealers.
The data increased activity in the mortgage market, offset by
low demand for unsecured credit and falling money supply.
December mortgage approvals rose to 52,939 from 52,628 in November,
the highest outturn since December 2009. Net mortgage lending rose
Stg0.74 billion on the month.
The broad money data showed M4 ex-IOFCs, a measure designed to
exclude economically irrelevant intra-financial sector transactions, fell
by a record 0.7% on the month in December, while M4 fell by a record
monthly 1.4%.
The data were impacted, however, by the steep drop in deposits
from securities dealers, which fell Stg16.8 billion in December, a BOE
official noted. This could be reversed in January, with these deposits
having also fallen heavily last December.
The BOE December Bankstats data showed net overseas Gilt holdings
fell by Stg10.663 billion, having risen by Stg16.343 billion in
November. Overseas Gilt holdings had surged at the start of the second
wave of quantitative easing, which began in October.
–London newsroom: +44 207 862 7491 e-mail: drobinson@marketnews.com
[TOPICS: M$B$$$,M$$BE$,MABDS$]