Free Trial

What Recession?


Eurodollar/SOFR/ Tsy Options Roundup


Corporate Issuance Over $60B/Wk

Real-time Actionable Insight

Get the latest on Central Bank Policy and FX & FI Markets to help inform both your strategic and tactical decision-making.

Free Access
MNI (London)
By Jai Lakhani and David Robinson
     LONDON (MNI) - The following are the key points from the May money and
credit data release published Friday by the Bank of England:
     - The cost of mortgage borrowing is heading higher, with the average rates
quoted by lenders at their highest levels since 2016. BOE data showed that the
rate on the 2 year 75% loan-to-value (LTV) mortgage was 1.74% for May, up from
1.70% and the highest since June 2016 and for a 2 year 85% LTV, the highest
since May 2016. The quoted (shop-window) rates are a leading indicator and
suggest borrowing will be more expensive in the months to come.
     - Mortgage approvals ticked up in May 2.5% to 64,526, up from 62,941 in
April and above the six-month average of 63,803. With borrowing costs set to
rise, its questionable whether this improvement will be sustained.
     -Unsecured borrowing remains fairly volatile on a month-to-month basis with
net consumer credit dropping slightly in May to stg1.405bn from stg1.764bn in
April but up from stg428mn in March. The May figure was however at the six month
average of stg1.4bn. The volatility appears to be stemming from other loans
which included motor finance.
     -Business borrowing surged in May but this was driven in part by merger and
acquisition (M&A) activity. The amount raised from banks and financial markets
increasing by stg8.9bn, similar to July 2017. The BOE said this was driven by a
record stg11bn net bond issuance which reflected the M&A activity.
     -Loans to non-financial businesses fell by stg1.0bn in May. This was a
second consecutive fall with April's stg2.8bn fall representing the lowest net
change since August 2017. The fall in May was driven by loans to large
businesses falling whilst loans to SMEs in May was flat. This is mirrored by Q1
GDP reporting the first fall in business investment since Brexit.
--MNI London Bureau; tel: +44 203-586-2225; email:
MNI London Bureau | +44 203-865-3812 |

To read the full story

Why Subscribe to

MNI is the leading provider

of news and intelligence specifically for the Global Foreign Exchange and Fixed Income Markets, providing timely, relevant, and critical insight for market professionals and those who want to make informed investment decisions. We offer not simply news, but news analysis, linking breaking news to the effects on capital markets. Our exclusive information and intelligence moves markets.

Our credibility

for delivering mission-critical information has been built over three decades. The quality and experience of MNI's team of analysts and reporters across America, Asia and Europe truly sets us apart. Our Markets team includes former fixed-income specialists, currency traders, economists and strategists, who are able to combine expertise on macro economics, financial markets, and political risk to give a comprehensive and holistic insight on global markets.