26 Jun 2014
BoE taking the heat off - BBH
FXStreet (Guatemala) - Marc Chandler, Global Head of Currency Strategy at Brown Brothers Harriman noted that the BOE has taken some action to help cool off the UK housing market, as widely expected.
Key Quotes:
"The so-called macro-prudential measures from the BOE’s Financial Policy Committee include limiting a bank’s the share of mortgages at 4.5 times income to no more than 15% of new home loans, as well as having banks decline mortgages for borrowers who fail a new repayment stress test."
"The FPC said it does not see financial instability now but noted that “Without policy action, the risk of excessive household indebtedness is material. The policy package is targeted to mitigate this risk in a prudent and proportionate fashion.”"
Key Quotes:
"The so-called macro-prudential measures from the BOE’s Financial Policy Committee include limiting a bank’s the share of mortgages at 4.5 times income to no more than 15% of new home loans, as well as having banks decline mortgages for borrowers who fail a new repayment stress test."
"The FPC said it does not see financial instability now but noted that “Without policy action, the risk of excessive household indebtedness is material. The policy package is targeted to mitigate this risk in a prudent and proportionate fashion.”"