Broad money growth turned positive in August for the first time since May. However, a 0.2 percent monthly rise only lifted the annual change in M4 from minus 1.0 percent to minus 0.8 percent, its second sub-zero print. M4 lending was also up 0.2 percent versus July, its first increase so far in 2023 but again, only enough to leave yearly growth negative at minus 1.6 percent.

Indeed, the picture was weaker after excluding intermediate other financial institutions. On a monthly basis, M4 fell 0.3 percent, its fourth straight contraction, while similarly-adjusted lending was just flat.

Meanwhile, further signs of a cooling housing market were apparent in mortgage approvals which fell from 49,532 to 45,354. This was their weakest mark since January and more than 37 percent below their level a year ago. However, more generally, net lending to individuals increased from £1.40 billion to £2.9 billion while total consumer credit climbed £1.644 billion after a £1.217 billion increase last time.

Consequently, the financial data are mixed but the broader picture remains consistent with at best sluggish economic growth which should boost the likelihood of Bank Rate having peaked.

M4 is the Bank of England's main broad measure of money supply. There is no target for M4 and in practice the central bank tends to follow an adjusted measure that excludes intermediate other financial corporations in order to get a handle on current underlying trends. The M4 private sector lending counterpart is the most closely watched aspect of the report.

M4 is similar to the M3 measure used in some other countries. M4 includes everything in M2 (also called the retail component of M4) plus other deposits with an original maturity of up to five years; other claims on financial institutions such as repos and bank acceptances; debt instruments issued by financial institutions including commercial paper and bonds with a maturity of up to five years. Understanding the role of money in the economy has always been an important issue for policymakers. And the pickup in broad money growth and decline in credit spreads over the past three years together with more recent financial market turbulence has made it a particularly pertinent issue. Monetary data can potentially provide important corroborative or incremental information about the outlook for inflation. Quantitative easing is essentially a policy aimed at boosting money supply.