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MNI: Weakest Consumer Credit Growth Since Nov'13: BOE>

     MNI (London) - The Bank of England's November money and credit data 
showed exceptionally weak growth in unsecured borrowing while average 
interest rates on new mortgages hit fresh lows. 
     The data showed signs of easier monetary conditions but demand for 
credit looked very weak. 
     The following are key points from the data: 
     -The average effective interest rate on new mortgages in November 
declined to 1.87% from 1.96% in October, hitting its lowest level in the 
series dating back to January 2016. The average rate on the stock of new 
mortgages held steady at 2.39%. 
     -Despite the decline in interest rates mortgage approvals, a 
reliable indicator of future housing market activity, drifted sideways. 
     The fractional increase in mortgage approvals to 64,994 in November 
from 64,662 in October still left them below the 65,825 recorded in 
September and approvals were subdued by historic standards. 
     -Net consumer credit, the change in unsecured personal borrowing, 
increased by a paltry stg563 million in November, the smallest increase 
since November 2013. 
     The net change in secured borrowing was stg4.052 billion, down from 
stg4.312 billion in October. 
     -The various broad money measures showed an accleration in growth 
on the month and year. 
     Overall M4 was up 0.8% on the month in November and up 4.5% on the 
year while M4 ex-IOFCs, a measure which excludes intra-financial sector 
money flows, was up 0.6% on the month and up 4.0% on the year. 
--MNI London Bureau; tel: email:
[TOPICS: M$B$$$,M$E$$$,MT$$$$,MX$$$$,M$$BE$] 

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