Intra-Day Market Moving News and Views
16 Dec 2014 09:33GMT
GBP/USD - 1.5630... Although the British pound traded with a firm bias in Asia and briefly rose to session high at 1.5678 in European morning, price swiftly surrendered its gains and fell sharply to 1.5612 after the release of weaker-than-expected UK inflation data.
Statement from BoE's Carney, quote:
'momentum may return to UK housing market after stamp duty cut and falls in mortgage rates;
international risks likely to figure prominently in 2015 stress test;
given footprint of largest UK banks in Asia, can expect Asian risk to be in future stress test;
want to explore how contagion can spread from less liquid mkts to core mkts;
UK institutions have very modest banking exposure to Russia;
BoE will look through direct impact of oil price on UK inflation.'
BoE FPC quote:
'judges no system-wide macroprudential actions needed in response to UK stress tests;
decides at Dec meeting to set counter-cyclical capital buffer rate for UK exposures at 0%;
risks from UK housing market have not risen since June but household debt still high;
UK banks' recent misconduct and operational failings show better governance needed;
stress tests give clean bill of health to Barclays, Hsbc, Nationwide, Santander UK and Standard Chartered.'
BoE stress tests show 'co-operative bank was only one to fall below 4.5% capital threshold;
RBS exceeded 4.5% threshold after submitted revised capital plan, BoE judges additional plan not needed;
Lloyds exceeded 4.5% threshold, not required to submit revised capital plan due to action since end 2013.'
'BoE stress tests show UK banks could continue to serve economy even after severe stress.'
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