UK broad money annual growth edges up to 4.5% in August 2026
UK broad money annual growth rose to 4.5% in August 2026, while lending growth held at 6.4%, Bank of England figures show. The readings suggest steadier monetary expansion rather than a broad acceleration.
UK broad money annual growth edged higher in August 2026, while annual lending growth was unchanged, according to Bank of England figures. M4ex growth rose to 4.5% from 4.3% in July, an increase of 0.2 percentage points. M4Lex growth held at 6.4%. Both readings are seasonally adjusted 12-month growth rates, pointing to a modest firming in money growth rather than a simultaneous acceleration across both measures.
The recent history tempers the significance of the August increase. Broad money growth had risen from 4.5% in March to 4.9% in June before falling in July. August therefore brought it back to March’s pace, but not to June’s stronger reading. Lending growth also remained below its June rate of 6.7%, although it was above the 6% recorded in March and May. Together, these comparisons suggest stability after July’s easing rather than renewed momentum across the two aggregates.
M4ex measures sterling broad money excluding intermediate other financial corporations. M4Lex measures sterling net lending to the private sector, also excluding intermediate other financial corporations. The figures describe growth over a year, not the amount of money created or lending extended during August. An unchanged annual lending growth rate therefore does not mean that lending activity stopped during the month.
A steady financial backdrop, not an activity surge
The economic signal is one of continued nominal financial expansion, with only limited evidence of strengthening momentum. Faster broad money growth could support spending if holders choose to deploy additional liquidity rather than retain it. The small rebound, however, does not establish that households or businesses increased expenditure, and money growth is not a measure of purchasing-power-adjusted activity.
Steady lending growth is consistent with continued financing support for private-sector activity. Its implications for demand depend on how borrowing is used and on repayment patterns: growth in lending balances does not establish stronger demand for new loans. August’s figures thus offer a firmer signal of continuity in financing than of accelerating production or consumption.
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