U.K. Mortgage Approvals Jump to 15-Month High, Consumer Credit Falters
The U.K. mortgage approvals rose to a 15 month high to 50.1K in July from a revised reading of 47.9K in June as potential home buyers took advantage of lower home prices paired with record-low borrowing costs. At the same time, consumer credit unexpectedly slipped to -0.2B in July to mark the first decline since April 1993, and households may continue to lower their temperament to take on secured debt as they face a weakening labor market paired with fears of a slower recovery. As credit conditions remain far from favorable, the Bank of England is widely expected to keep the benchmark interest rate at the record-low going into the following year in an effort to steer the economy out of recession, and the central bank may continue to ease policy further over the coming months in order to support a sustainable recovery.
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