Measures of M4 and M4 lending excluding intermediate other financial corporations

Abstract

In September 2007, the Bank proposed to modify the measurement of broad money in the United Kingdom. Excluding the deposits of ‘other financial corporations’ (OFCs) that specialise in intermediation between banks would provide an economically more relevant measure of broad money than that based on the traditional M4 definition. This article explains how quarterly measures of M4 (and M4 lending) excluding ‘intermediate’ OFCs are compiled. It also sets out the Bank’s plans for future monthly publication of these statistics.