• BoE - some possible global risks have not crystallised, financial vulnerabilities in China remain pronounced

Market news

27 June 2017

BoE - some possible global risks have not crystallised, financial vulnerabilities in China remain pronounced

  • Risks from domestic financial environment are at standard level

  • Expects to raise ccyb to 1.0 pct from 0.5 pct in november, with further one-year implementation phase

  • Uk consumer credit has grown rapidly, lenders may be placing undue weight on recent benign conditions

  • Fpc stands ready to cut ccyb rate if risks materialise that could tighten lending conditions

  • UK authorities to issue new recommendations on consumer credit in july, boe will bring forward consumer credit stress tests

  • Plans to raise banks' minimum leverage ratio requirement to 3.25 pct of exposures ex central bank reserves from 3 pct

  • Will continue to oversee brexit contingency planning by financial institutions, including for 'no deal' outcome

  • Expects to keep existing mortgage loan-to-income restrictions for long-term, tweaks benchmark for mortgage affordabilty test

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