U.K. household borrowing remains unchanged in September, consumer credit growth to ease in coming months

The latest BoE lending prints implied slight change in the U.K. household borrowing in the month of September, with growth staying unchanged from the prior month at 4 percent year-on-year. Consumer credit growth dropped down marginally to 9.9 percent year-on-year, the bottom of the recent range, in spite of a slightly higher pace of growth in credit card borrowing.

In the meantime, mortgage lending growth rose slightly to 3.2 percent year-on-year, the most solid rate in 12 months. However, with mortgage approval numbers having dropped towards the bottom of the recent range, that rate is unlikely to be maintained, noted Daiwa Capital Markets Research.

In all, the figures released today seem to be consistent with recent trends and thus in line with an expected MPC decision to tighten monetary policy in this week. However, with interest rates already rising in expectation of a rate hike this week, against a backdrop of weak consumer sentiment, consumer credit growth is expected to ease in the months ahead exerting additional downward pressure on household spending, added Daiwa Capital Markets Research.

At 19:00 GMT the FxWirePro's Hourly Strength Index of British Pound was bullish at 93.9452, while the FxWirePro's Hourly Strength Index of US Dollar was neutral at -32.9767. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex

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