BoE: FPC hikes to normal well ahead of MPC
- All banks passed the BoE’s annual stress tests for the first time. No new capital is required, but some capital will become incorporated into regulatory requirements.- With the UK banking system facing cyclical risks back at normal levels, the FPC announced another 50bp CCyB hike to 1.0%, which it sees as cyclically normal for the instrument. However, it will reconsider its adequacy in 2018 H1.
- Normalisation of the countercyclical macroprudential policy instrument matches the maturing of the cycle, which also warrants a return to neutral in Bank rate. Macroprudential policy is complementing monetary policy, not substituting it.
Heteronomics provides UK-centric macro research. A hallmark attention to detail delivers a depth of analysis beyond what the sell side now delivers. Clients can also experience events that privately provide insights on these topics. Have a bespoke request for research or an event? Let us know. Clients can expect assistance with their own requirements to the extent it doesn't impinge upon other clients. Think of it as retaining an expert economist, without the large overhead.
Unfortunately, this report is not available for the investor type or country you selected.
Browse all ResearchPool reportsReport is subscription only.
Thank you, your report is ready.
Thank you, your report is ready.