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UK consumer credit slows, mortgage approvals surpass forecasts

UK consumer credit slows, mortgage approvals surpass forecasts

Consumer credit growth in the UK soared by its slowest pace in the year ending September amid anticipations about developments of Brexit after extending the deadline for exiting the European union for January 2020.

According to figures released by the Bank of England on Tuesday, growth in unsecured lending slowed to 6% from 6.1% in August, marking the lowest reading since July 2014. The Bank of England noted that consumer credit growth has now declined steadily for nearly three years. 


Consumer credit in the UK rose by £0.828 billion in September of the current year, down from £0.969 billion a month. That came below market estimates of £0.900 billion, which is considered the smallest increase in 7 months.

Other data from the Bank of England released today showed that UK mortgage activity remained weak last month.


Mortgage approvals rose by 0.4% from August to 65,919, higher than expectations of 65,000, while net mortgage borrowing by households remained unchanged to £3.8 billion in September.

As of 14:45 GMT, the pound traded higher for a second straight session versus the U.S. dollar at 1.2886, ahead of a critical UK Parliament later in the day on whether to hold a snap general election.

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