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M4 lending slows in June
THE flow of money to non-financial companies – a gauge of the effectiveness of the Bank of England’s £200bn asset purchase programme – slowed markedly in June. M4, excluding intermediate other financial corporations, rose by just 0.2 per cent on the month, the lowest since January, taking the three-month annualised rate down to six per cent in June from 8.9 per cent in May. “It’s evident that the ongoing fall in bank lending to firms is being influenced significantly by low corporate demand for credit in addition to restricted supply,” said Howard Archer at IHS Global Insight.