BOE: Cuts regulatory buffers, will increase bank lending by up to £150m

5 July 2016, 14:57
Sherif Hasan

Latest BOE  Financial stability report

  • Will reduce counter cyclical capital buffer to 0.0% from 0.5% with immediate effect until June 2017 at the least
  • CCB cut will reduce buffer by £5.7bn and raise bank lending capacity by £150bn (not mil as I put in the title)
  • FPC is ready to take any further action needed to support financial stability
  • Will give insurers more flexibility to deal with a sharp fall in market interest rates
  • BOE stands ready to take action to ensure capital and liquidity buffers can be drawn on to support lending
  • BOE needs to reduce any pressure on firms to restrict supply of credit and provision of financial services
  • BOE closely monitoring commercial real-estate, buy-to-let, investor appetite for UK assets and fragile market liquidity
  • Current outlook for financial stability is challenging and some Brexit risks are starting to crystallise

Carney is up next to go over the report and you can watch him live from the Old Lady here

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