BOE FPC to evaluate risk of sterling dropping by 32% to hit 85 cents
|CNBC reports the following headlines from the latest meeting minutes from the BOE's FPC (Financial Policy Committee) published on Monday morning.
Key Points:
Financial stability risk is broadly unchanged since the November meeting
The policy uncertainty is high in a number of countries
Will launch a review into quality of new consumer lending
UK household indebtedness remains high by historical standards and has begun to rise relative to incomes
Consumer credit has been growing particularly rapidly
Will assess the financial stability implications of firms' plans to adapt to the United Kingdom's withdrawal from the European Union
Will oversee banks contingency plans to handle a range of possibilities arising from Brexit talks
Will test the risks associated with sterling dropping by a further 32% from today's level to languish at a low of 85 cents by year-end.
Want to avoid any spillovers from any sudden adjustments to banks business models
2017 stress tests will test short-term and long-term, scenarios
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