–BOE: Mar M4 Ex-intermediate OFCS 1.1% m/m; +5.9% 3m Annualised
–BOE: UK Mar House Purchase Approvals 48,901 vs 46,882 Feb
–BOE Mar M4 Ex-IOFCS Highest Since Q2 2008
–BOE: UK Mar Net Mortgage Lending stg0.318bn vs stg1.848bn Feb
–BOE: UK Mar Net Consumer Credit stg325mln vs stg578mln Feb
–BOE: Mar M4 Up 0.2% m/m; Up 3.6% y/y
–BOE: Mar M4 Lending Up 0.5% m/m; Up 4.3% y/y

London (MNI) – Mortgage approvals picked up and the Bank of
England’s favoured measure of broad money growth spiked higher in March,
the latest BOE data show.

The data highlight the erratic movements in the monetary
aggregates. While the BOE favoured measures, M4 lending excluding
intermediate other financial corporations, spiked up M4 lending in
March posted its lowest yearly growth since October 1994.

M4 ex-IOFCS, which aims to remove the economically irrelevant intra
financial sector money flows, rose 1.1% on the month in March and was up
5.9% on a 3 month annualised basis, hitting its highest level since Q2
2008. This was up from a 0.4% monthly rise in February, corresponding to
a 0.9% fall on the 3 month annualised measure.

M4 lending, however, rose 0.5% on the month to stand up 4.3% on the
year, the lowest yearly growth since October 1994.

The BOE has put the spotlight on the M4 ex-IOFCS measure as a
cleaned up measure of money supply but, as analysts have noted, it too
has proved to be volatile and to have no strong correlation with
inflation.

Mortgage approvals showed an easier to interpret pattern. The
number of approvals rose to 48,901 in March from the recent low of
46,882 in February.

A BOE official said weather related effects, with cold weather
impacting activity in January and February, had dropped out of the
picture in March.

The net value of lending secured on dwellings dropped to stg318
million from stg1.848 billion in February.

With approvals taking some 3 months, on average, to feed through
the data suggest some pick up in housing market activity in the early
summer.

Demand for unsecured borrowing remained weak, with net consumer
credit in March stg325 million compared to stg578 million in February.

–London newsroom: +44 207 862 7492 email: drobinson@marketnews.com

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