'Healthy' figures suggest Bank's boost is working.

Summary: The biggest monthly growth in the money supply since January gives hope that the Bank of England's Au200 billion boost is taking effect.

The biggest monthly growth in the money supply since January gives hope that the Bank of England's Au200 billion boost to the economy is starting to take effect.

The figures showed 'broad money' - bank and building society deposits and cash - growing by 1.8 per cent in October, the best since before the Bank began its quantitative easing (QE) scheme in March.

Lending also rose by 1 per cent month-on-month - the biggest increase since last December - although the annual growth rate slowed further to 6.8 per cent.

The Bank, which voted to expand its QE purchases by Au25 billion earlier in the month, will publish more detailed data on money growth next week.

Capital Economics' chief European economist Jonathan Loynes said the figures looked "healthy", but warned: "We will not know until the breakdown next week how much of that reflected financial sector transactions."

Meanwhile, The Bank's Trends in Lending report said lending to businesses fell across all the main sectors of the economy in the third quarter of the year.

Independent Television News Limited 2009. All rights reserved.

Independent Television News Limited 2009. All rights reserved.

Provided by Syndigate.info an Albawaba.com company