Bank of England FPC statement from 23 March meeting now published
- EU referendum is biggest near term domestic risk to fin stability
- heightened and prolonged Brexit uncertainty could further weaken sterling and affect many UK borrowers
- Prudential Regulation Authority to tighten minimum lending standards for buy-to-let property
- PRA rules likely to reduce level of buy-to-let mortgage approvals by 10-20% in 3 years time
- lenders plan to increase gross buy-to-let lending by 20% a year, expects modest impact from new measures
- FPC will raise banks' counter-cyclical capital buffer to 0.5% from 0% effective today
- impact of CCB on large banks will be limited by removal 0.5% Pillar2 capital buffer requirement
- 2016 bank stress test scenario will test global and UK recession, big jump in UK unemployment
The Bank of England's Financial Policy Committee (FPC) assesses the outlook for financial stability by identifying the risks faced by the financial system and weighing them against the resilience of the system. In doing so, its aim is to ensure the financial system can continue to provide essential services to the real economy, even in adverse circumstances.
Full statement here
GBPUSD a little lower at 1.4249 on the headline and Brexit comments. but nothing new of note here.
