Wednesday, September 29, 2010
Monetary puzzles
Posted by David Smith at 12:00 PM
Category: Thoughts and responses

CHART3.gif

On the face of it, the latest numbers from the Bank of England were not too bad. Adjusted M4 money jumped by 12.8 billion in August, after contracting by 0.2 billion in July, though the Bank is clearly concerned about the seasonal adjustment in these figures. The 12-month growth edged up from 1.2% to 1.6%. The chart above also suggests a modestly improving picture for lending to non-financial businesses (private non-financial corporations) though this is sensitive to the choice of series.

Lending to individuals rose by 1.7 billion, despite a modest repayment of consumer credit. Mortgage approvals slipped to a six-month low of 47,372 but are essentially flat. More on the Bank website.