–Adds To Version Transmitted At 0930 GMT; Corrects Mortgage Rate
London (MNI) – Mortgage approvals rose to their highest level for
almost two years in November, coming in very close to analysts’ median
forecast, while unsecured borrowing picked up a little, according to
Bank of England data.
November mortgage approvals came in at 52,854, just a shade below
the median prediction of 53,000. Approvals are still running at
historically low levels, with the outturn well below the data series’
long run average of 87,650. The series goes back to 1993.
While the data show a modest pick-up in approvals, the broad
picture is one of subdued demand for credit.
Unsecured borrowing growth remains weak. Net consumer credit rose
by Stg0.394 billion in November having risen by just Stg53 million in
October.
Broad money growth, on the BOE’s favoured measure excluding
intermediate other financial corporations, was flat on the month in
November, and up just 2.6% on a four quarter/12 month basis.
Interest rates on mortgages dipped in November, which should help
support demand. The effective rate on outstanding mortgages fell by 2
basis points to 3.36% while the rate on time deposits rose by 3 basis
points to 2.8%.
With the BOE purchasing large amounts of gilts, net overseas
holdings of gilts have been rising sharply. In November, overseas gilt
holdings rose by Stg16.344 billion, up from Stg12.527 billion in the
previous month, the BOE data showed.
This was the highest outturn since September 2008, and underscores
the demand for gilts at a time when they are underpinned by quantitative
easing and there is turmoil at the periphery of the Eurozone.
The BOE launched the second wave of quantitative easing in October.
–London newsroom: +44 207 862 7491 e-mail: drobinson@marketnews.com
[TOPICS: M$B$$$,M$$BE$,MABDS$]
