Market comment - Lending data show rate hikes starting to weigh on UK

Davy Research
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Yesterday’s (November 29th) UK lending data showed that Bank of England (BOE) rate hikes are now starting to depress activity. Net consumer credit at £0.8bn in October was relatively muted – depressing spending and accompanied by record flows into time deposits as interest rates rose to 3.26%. Similarly, mortgage approvals at 59,000 fell to their lowest level since 2015 (ex-pandemic) but will surely decline further as rates on new mortgage products are still close to 6% – stretching affordability for many prospective homebuyers.