Bank of England’s preferred measure of money supply fails to grow in July

first_img Share Bank of England’s preferred measure of money supply fails to grow in July Show Comments ▼ Tuesday 31 August 2010 8:48 pm whatsapp KCS-content Tags: NULL whatsapp Read This Next’A Quiet Place Part II’ Sets Pandemic Record in Debut WeekendFamily ProofHiking Gadgets: Amazon Deals Perfect For Your Next AdventureFamily ProofIndian Spiced Vegetable Nuggets: Recipes Worth CookingFamily ProofAmazon roars for MGM’s lion, paying $8.45 billion for studio behind JamesFamily ProofTortilla Mango Cups: Recipes Worth CookingFamily ProofNew England Patriots’ Cam Newton says no extra motivation from Mac Jones’SportsnautBack on the Rails for Summer New York to New Orleans, Savannah and MiamiFamily ProofYoga for Beginners: 3 Different Types of Yoga You Should TryFamily ProofWhat to Know About ‘Loki’ Ahead of Disney+ Premier on June 9Family Proof THE Bank of England’s preferred measure of Britain’s broad money supply – excluding intermediate financial institutions (M4X) – failed to grow in July, raising fears among some economists that asset purchases have failed to boost the money supply sustainably. According to figures published by the central bank yesterday, its preferred measure was flat on the month while the headline measure posted growth of 0.4 per cent compared to June. The three-month annualised growth of the preferred measure slowed to 5.6 per cent from 6.8 per cent, taking it back below the 6-9 per cent range that Bank governor Mervyn King has said he is aiming for. However, other economists point to the faster pace of growth in the key money supply measures since the start of the year, with M4X growing at 5.9 per cent over the past six months. Henderson’s Simon Ward points out that within broad money non-financial companies’ holdings rose by 0.9 per cent in July, pushing annual growth up to 4 per cent.But, unusually, households’ broad money holdings were unchanged in July. The last and only time this has happened since 1997 was in October 2008 at the height of the financial crisis. Ward attributes this lack of growth to households switching into mutual funds and borrowers repaying debts. last_img

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