UK money supply indicates expansion

UK money supply figures for December, released yesterday by the Bank of England, suggest moderate economic expansion during the first half of 2011. Broad money rose by three per cent annualised in the three months to December while annual growth moved up to 2.3 per cent. However, narrow money remained sluggish with M1, accounting for currency plus overnight deposits, up by only 1.3 per cent in the 12 months to December, down from five per cent in December 2009.