Figures that were released last week have indicated that unsecured credit growth in the U.K. eased in the month of November to 9.1 percent year-on-year. This is the weakest rate in nearly two years. According to BoE Credit Conditions survey for the fourth quarter of 2017, this category of lending is expected to continue to slow. Especially, the survey reported that availability of unsecured credit dropped for a fourth straight quarter, a finding that would be welcomed by the FPC, which has been worried about the risks that high levels of consumer borrowing pose to bank balance sheets.
Consistent with the survey’s finding that credit-scoring criteria continue to tighten, lenders reportedly expect that access to unsecured credit would deteriorate further this quarter, noted Daiwa Capital Markets Research in a report. But demand for unsecured credits has also softened, with the relevant survey indicator dropping to the lowest level since the end of 2015. Borrowing of credit cards continues to be relatively popular, but households appear to have rapidly lost appetite for unsecured loans.
Overall, the survey showed that conditions - availability, credit scoring criteria and demand - in the mortgage market remained little changed, suggesting that the UK housing market will remain lethargic but broadly stable this year, with prices set to continue following a very modestly rising path”, added Daiwa Capital Markets Research.
At 21:00 GMT the FxWirePro's Hourly Strength Index of British Pound was slightly bearish -53.4801, while the FxWirePro's Hourly Strength Index of US Dollar was neutral at 1.6355. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex
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