Details of the Bank of England’s FPC financial stability report 26 June 2014

Report out now. Headlines here. Ryan covering the presser.

  • BOE to set new test on borrowers ability to repay mortgages
  • will limit number of high loan- to- income mortgages
  • no more than 15% of new mortgages shouldf exceed 4.5 LTI
  • new limit effective from Oct 1
  • future path of UK housing market is uncertain
  • sees risk that housing momentum could build
  • new mortgage measures are prudent and proportionate
  • won’t have immediate impact
  • rising debt could pose risks to banks and economy
  • indebtedness not an imminent threat to stability
  • UK banks had adjusted CET1 capital ratio of 8.4% in Q1

Headlines offering little that we didn’t know but pound rallying again to 1.7030 and 0.7993

Short term risk report here .

Medium term risk report here

Full report here

Q&A starting now 10.41