European Economy: U.K. Slight Concerns Over Inflation
U.K. July M4 money growth remained robust, up 0.9% m/m and 11.2% y/y. This was still lower than 1.8% and 11.4% respectively in June but above our survey median for 11.0% y/y, and should add to concerns over continued upside risk to inflation. Indeed, the BoE noted in the August minutes that money and credit growth was only of the key factors to watch near-term to determine the risks to inflation.