The Bank of England's latest figures on lending to individuals throw doubt on hopes for another inte...
The Bank of England's latest figures on lending to individuals throw doubt on hopes for another interest rate cut at the Monetary Policy Committee's next meeting in a week's time.
Total lending to individuals grew by £10bn in June as the result of a £7.8bn increase in secured lending and a £2.2bn increase in consumer credit.
The value of all secured loans hit £24.6bn as the number of loans approved for house purchases surged to 125,000 from an average of 96,000 per month in the three months to May.
The growth in consumer credit took gross advances to £17.4bn, and the annualised rate of growth of such credit to 14.6%.
Economists now say that another rate cut next month is questionable because of the fear that increasing debt loads will hammer consumers once the current monetary cycle turns.
There are also questions over just how long the market can sustain record levels of equity withdrawal from property given the continued slowdown in house price inflation.
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