GBP MORTGAGE APPROVALS
Mortgage approvals in the U.K. inched higher to 33K from 32K in August, while lending surged to 2.2B in September as a result of lower borrowing costs. Despite the unexpected improvement, conditions may only get worse as Europe’s second largest economy slips into a recession, and may force the Bank of England to step in once again. Mounting growth fears has already led the BoE to lower the benchmark interest rate by 50bp for the first time since 2001, and the dovish outlook held by the MPC has raised speculation that the central bank will ease policy further, which would only stoke increased selling pressures for the British pound.
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