UK Businesses See Sharp Turn in Net Finance, Mortgage Market Slows

The Bank of England's money and credit report revealed that private non-financial corporations (PNFCs) raised almost no net finance in July, a sharp turn from June's £2.4bn of net repayments.

According to the report, bank lending to businesses rose slightly to £1.8bn net in July, up from £1.6bn in June, but within the separate net finance measure, PNFCs' overall position was close to flat.

The £2.3bn of net bond redemptions, £900m of net repayments through bank and building society loans, and £800m of net equity buybacks were partially offset by £1.0bn of net commercial paper issuance.