London—The UK's M4 money supply growth witnessed a sharp decline in April 2024, descending to a mere 0.1% from March's 0.7%, according to the latest data released on 31 May 2024. This significant drop marks a considerable slowdown in the monthly increase of the broad money measure, which encompasses cash, bank deposits, and other liquid assets circulating in the economy.
In March 2024, the M4 money supply had shown a modest growth rate of 0.7%, a figure that itself indicated a more conservative expansion compared to earlier months. The latest figure of 0.1% for April signifies a pronounced deceleration, highlighting concerns over liquidity and financial activity within the UK market.
This month-over-month comparison draws attention to potential shifts in economic activity and confidence levels, suggesting that businesses and consumers might be holding back from spending or investing. The latest data update triggers speculation about upcoming monetary policy adjustments by the Bank of England, as the institution evaluates ways to stimulate economic growth and sustain financial stability.
