Sterling is little changed against its most traded peers including US Dollar despite the release of Bank of England data showing that lending to small UK firms hit a record high in June and mortgage approvals slowed. Against the Euro it edged higher, snapping a four day run of losses.
Lending to non-financial businesses shrank by a net £1.3 billion. However, within that, lending to smaller firms rose by £238 million, compared with the average monthly fall of £500 million over the previous six months.
The UK’s Banks have been accused of being the cause of the decline in lending with the National Institute of Economic and Social Research (NIIESR) suggesting that lenders excessive distaste for risk was the key factor.
Mortgage approvals also took an unexpected dive in June as lenders approved 57,667 home loans compared with the revised figure of 58,071 in May. Economists had been expecting an increase to 59,700.
Critics of the government’s support for housing have warned it could push up prices without encouraging more building. Britain’s business minister Vince Cable said on Sunday he was worried about the risk of a new housing bubble.
In contrast to the BOE’s, the British Bankers’ Association reported last week a rise in mortgage approvals in June rose to their highest level since January 2012.
This week sees the Bank of England announce its next policy decision which economists are predicting will see the Central Bank keeping its bond-buying target at the current level of £375 billion and maintain interest rates at the record low level of 0.5%.
Current Pound Sterling (GBP) Exchange Rates
The Pound Sterling/US Dollar Exchange Rate is currently in the region of: 1.5381
The Pound Sterling/Euro Exchange Rate is currently in the region of: 1.1590
The Pound Sterling/Australian Dollar Exchange Rate is currently in the region of: 1.6653
The Pound Sterling/New Zealand Dollar Exchange Rate is currently in the region of: 1.9050
The US Dollar/Pound Sterling Exchange Rate is currently in the region of: 0.6501
The Euro/Pound Sterling Exchange Rate is currently in the region of: 0.8628
The Australian Dollar/Pound Sterling Exchange Rate is currently in the region of: 0.6004
The New Zealand Dollar/Pound Sterling Exchange Rate is currently in the region of: 0.5249
(As of 10:35 am GMT)
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