Cable is falling faster than England’s World Cup chances since the turn of the hour.

GBP/USD has quickly slid a half-cent to 1.6807 after Osborne gave the BOE powers to cap mortgage lending ratios. This will give the BOE legal powers to rein in risky mortgage lending and the authority to cap the size of mortgages as a proportion of income.

The thinking is that the BOE will use the measures to target housing specifically rather than hiking rates. This kind of move has been in the offing for some time so it shouldn’t be a surprise but it’s a quick market today and the pound is taking a header. Some bids are 1.6800 are lurking.