U.K. mortgage approvals leapt 57.3K in October after rising 56.2K in the month prior amid economists’ expectations of 57.0K to mark the highest level of lending since March 2008, the Bank of England said today in London. However, consumer credit remained weak and plunged GBP 0.6B during October after contracting 0.3B in the previous month to post the largest monthly repayment since record keeping began in 1993. The data reinforces a weakened outlook for private sector consumption as households face a weakening labor market paired with tightening credit conditions however, economic conditions are likely to improve throughout the remainder of the year as policy makers see the nation emerging from the worst recession since the post-war period. Looking ahead, as the Bank of England maintains a dovish policy stance , interest rates are likely to remain at the record low going into the following year, and the MPC may look to expand its emergency program over the coming months as the central bank keeps an “open mind” for future policy.
Mortgage Approvals Monthly Chart
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