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mpc: 3 A8 Households' M4 deposits had risen by £2 billion (0.4%) in February. But the twelve-month growth rate, at 5.3%, had remained low when compared with rates seen in 1999. Households' M4 lending (excluding the effects of securitisations) had remained robust, increasing by £4.3 billion (0.8%) in February, with the twelve-month rate at 9.7%. A9 Data on mortgage approvals had pointed to continuing buoyancy in housing market activity. The number and value of mortgage approvals had risen by 11,000 and £0.6 billion respectively in February, reversing the downward trend of the previous two months. This had suggested that secured lending could rise in the coming months. Revised estimates by Bank staff had suggested that mortgage equity withdrawal had been strong in 1999 Q4 at around £2.5 billion, although it had been weaker than provisional estimates, which had put the figure at around £3 billion. Total real lending for consumption (real mortgage equity withdrawal plus real unsecured lending) in 1999 was estimated to have been at its highest level since 1990. A10 Net bank borrowing (borrowing minus deposits) by PNFCs had risen again in January and February. PNFCs' M4 deposits had fallen by £0.5 billion on average over the first two months of the year whereas PNFCs' M4 lending (excluding the effects of securitisations) had risen by £0.6 billion on average. Non-bank borrowing by PNFCs (and foreign currency capital issues in particular) had been strong in the first two months of the year. In 1999 the PNFCs' financial deficit had stood at £20 billion, which, at 2.4% of GDP, had been at its highest level since 1990. Unlike the previous economic cycle, a relatively small proportion of this debt had been raised via the banking system. A11 OFCs' M4 had fallen by £1.2 billion (-0.7%) in February, and was 4.5% lower than a year earlier, down from -3.8% in January. OFCs' M4 lending rose by £2.3 billion (1.1%) in February, a 10% increase on a year earlier. A12 Since the previous MPC meeting, short interest rate expectations around one year out, as measured by the gilt repo curve, had risen by around 5 basis points. Medium-term yields (5-12 years) had risen by around 10-15 basis points. A13 The February increase in interest rates of 25 basis points had been fully passed through to the average standard variable mortgage rate, but there had been a continued trend for lenders to provide greater discounts for new mortgages. Fixed-rate mortgages had also fallen.