U.K. monetary developments supporting activity

The broad money aggregate of U.K. has been growing at around 4% yoy, which with inflation close to  zero is highly supportive of e conomic activity. That trend should continue in this month's data. As regards the household sector, consumer credit has been the fastest growing area at a pace of 8.5% 3mth pa compared to 2.2% for loans secured on dwellings (for house purchase or remortgage). 

Consumer credit growth should remain firm at £1.2bn for net consumer credit and mortgage approvals should pick up from 66.6k in June to 68.5k, said Societe Generale in a report on Monday.