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