QE still failing to boost money growth

There are few signs that either money or lending growth is showing the improvement needed to turn the fragile signs of economic recovery into a strong and sustained upturn. The MPC’s preferred measure of broad money or M4 fell in June, while annual lending growth to non-financial companies turned negative for the first time since 1995. (See Chart.) Together with the 0.8% drop in GDP in Q2, this suggests that more support for the economy through extra quantitative easing is required.