Exclusive interviews with leading policymakers that convey the true policy message that impacts markets.
Reporting on key macro data at the time of release.
- Emerging MarketsEmerging Markets
Real-time insight of emerging markets in CEMEA, Asia and LatAm region
- MNI ResearchMNI Research
Actionable insight on monetary policy, balance sheet and inflation with focus on global issuance. Analysis on key political risk impacting the global markets.
- About Us
By David Robinson and Irene Prihoda
LONDON (MNI) - Bank of England money and credit data showed that in
June the average interest rates being paid by borrowers on new mortgages
fell to their lowest level since January 2018 while mortgage approvals,
a reliable indicator of future housing purchases, nudged higher.
The growing gloom over the economic outlook, exacerbated by the
risk of a no deal Brexit, has seen market rate expectations pushed
lower with near term tightening no longer priced-in and new mortgage
interest rates have moved down, improving affordability.
The following are key points from the BOE data sets:
-The average interest rate on new secured lending fell to 2.02% in
June from 2.08% in April and May, hitting its lowest level since the
first month of last year.
The average interest rate on the stock of mortgages held steady at
2.42%, indicating no net gain to real household disposable income from
the move lower.
-The number of mortgage approvals rose in June to 66,440 from an
upwardly revised 65,647 in May, its highest reading since January.
While approvals picked up the range in recent months has been
tight, and the broad picture is one of steady demand rather than any
notable breakthrough to the upside or downside.
-Net secured lending rose to stg3.731 billion in June, up from
stg2.938 billion in May but below April's stg3.961 billion. Again, the
move was within the recent ranges.
-Unsecured borrowing was little changed in June at stg1.046 billion
compared stg0.906 billion in May.
-London newsroom: e-mail: firstname.lastname@example.org