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British mortgage approvals hit a two-year high in January and consumer credit expanded at the fastest pace in a decade, according to Bank of England data that is likely to add to the case for a tightening of lending requirements by the central bank. Mortgage approvals for house purchases numbered 74,581 in January from 71,335 in December.  Consumer credit grew by 9.1 percent year-on-year in January, picking up speed from December to hit its fastest pace since January 2006. Britain's economic recovery is still heavily reliant on spending by households many of which have been buoyed by strong growth in the value of their homes. The Bank of England has said it may raise the amount of money banks are required to put aside to cover their lending as the economy continues its recovery from the financial crisis. Some debt charities have also expressed concern about the pace at which consumers are taking on credit. The number of mortgage approvals rose throughout most of 2...

Bank of England Governor Mark Carney said interest rate cuts and a broadening of a bond-buying programme were possibilities as he sought to counter concerns that the BoE might be running low on ammunition to boost Britain's economy if needed. So far, the slowing of the global economy has not had a big impact on British growth which remains stronger than in many other rich economies since 2013. Carney, speaking to lawmakers, stuck to his view that British interest rates were more likely than not to rise from a record low 0.5 percent over the next three years as the economy continues to grow. But as the global outlook darkens, debate among investors has turned to what more governments and central banks globally can do to boost demand. Concerns about Britain's European Union membership referendum might also hurt the country's growth.Carney pointed to intensifying risks in emerging markets and said the BoE could provide more stimulus if needed. "If we were in a pos...

Around half of British households expect the Bank of England to hike interest rates in the next six months, up sharply since July even though they have become more downbeat about their finances, a survey showed on Wednesday. Markit's monthly Household Finance Index showed 48 percent of households predict the BoE will raise interest rates over the next six months, the highest figure since July 2014 and up from 34 percent last month. Economists polled by Reuters expect a first interest hike early next year as Britain's economy shows little sign of slowing much. However, households were the gloomiest about their finances so far in 2015, across a majority of job sectors. They were slightly less downbeat about the prospects over the next 12 months than they were in July. Data company Markit said the survey suggested the boost in consumer morale from falling inflation has started to ease off. "Improving economic fundamentals and gradually rising income from emplo...