–BOE: Apr M4 Ex-Intermediate OFCS +0.3% m/m; +6.6% 3m Annualised
–BOE: UK Apr House Purchase Approvals 49,871 vs 49,008 March
–BOE: Apr M4 Ex-IOFCs 3m Annualised Highest in Data Series
–BOE: UK Apr Net mortgage Lending stg490mn vs stg168mn March
–BOE: UK Apr Net Consumer Credit -stg136mln vs stg137mln March
–BOE: Apr M4 Unchanged m/m; Up 3.3% y/y
–BOE: Apr M4 Lending Down 0.4% m/m; Up 4.3% y/y

London (MNI) – Mortgage approvals rose for the second consecutive
month and the Bank of England’s favoured measure of broad money growth
hit a data series high in April, the latest BOE data show.

The data showed that while there was a modest pick up in secured
borrowing, consumers are continuing to pay back unsecured borrowing,
with net consumer credit declining on the month.

M4 excluding intermediate other financial corporations, a broad
money measure which seeks to exclude economically irrelevant
intra-financial sector transactions, rose 0.3% on the month in April and
was up 6.6% on a three month annualised basis. This measures, favoured
by the BOE, showed the highest three monthly annualised outturn since
the series began in September 2009.

BOE Governor Mervyn King said when the central bank launched
quantitative easing that it should bolster money growth, with the M4
ex-IOFCs becoming the favoured measure. Its movements, however, have
been erratic and BOE Monetary Policy Committee members have focussed on
other impacts from QE, including portfolio effects.

The April BOE data showed mortgage approvals rose to 48,871 from
49,008 in March, their highest outturn since December. Net lending
secured on dwellings rose by stg490 million, following a stg168 million
rise in March.

With approvals taking some 2 months, on average, to feed through to
house purchases the data suggest some pick up in housing market
activity in the summer months.

Net consumer credit declined by stg136 million, following a rise of
stg137 million in March.

The raft of other broad money indicators showed no monthly growth
in April. M4 was flat on the month and up 3.3% on the year, M4 lending
fell 0.4% on the month and was up 4.3% on the year and M4 lending
excluding securitisations was down 0.4% on the month and up 2.8% on the
year.

The 3.3% year-on-year M4 rise was last lower in September 1999.

–London newsroom: +44 207 862 7491 email: drobinson@marketnews.com

[TOPICS: M$B$$$,M$$BE$,MABPR$,MT$$$$]