UK money supply growth slows

UK MONEY supply grew by less than expected last month, although experts said the underlying trend was still strong. M4, a broad measure of money supply, was static in August. The City had predicted a 0.5 per cent month-on-month increase. The aggregate data were distorted by currency outflows, and M4 lending to the private sector came in at pounds 6.6bn, far higher than market expectations.

Meanwhile, the US House of Representatives rejected proposals to give the International Monetary Fund (IMF) an extra $18bn. The Senate had approved the funds. A joint House-Senate committee will try to reach a compromise.