Money supply grows the most in nine months, according to Bank
THE money supply showed its biggest monthly growth in nine months, raising hopes that the Bank Of England’s £200bn stimulus measures may be working.
Official figures released yesterday showed broad money or M4, which is made up of bank and building society deposits and cash, grew by 1.8 per cent in October.
That was the best monthly result since the Bank embarked on its quantitative easing scheme in March.
The Bank, which voted to expand its QE purchases by £25bn earlier in the month, will publish more detailed data on money growth next week.
Lending also rose by one per cent month-on-month, the biggest increase since last December – although the annual growth rate slowed further to 6.8 per cent.