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30 Nov 2015
BoE Financial Stability Report expectations - Nomura
FXStreet (Guatemala) - Analysts at Nomura noted that the BoE will publish its latest Financial Stability Report this week.
Key Quotes:
"...including any decisions by the FPC, which will be informed by the results of the annual stress test results."
"We expect the FPC to raise the countercyclical capital buffer to 0.5% in the interests of gradually addressing rising risks in the financial system as the credit cycle returns to a more normal state."
"Reduced emphasis on the credit gap and increased association with the stress revealed by the test has caused numerous references that cause us to forecast this. There is a risk that this is seen as a substitute for conventional tightening, which it does while leaning against sterling strength."
Key Quotes:
"...including any decisions by the FPC, which will be informed by the results of the annual stress test results."
"We expect the FPC to raise the countercyclical capital buffer to 0.5% in the interests of gradually addressing rising risks in the financial system as the credit cycle returns to a more normal state."
"Reduced emphasis on the credit gap and increased association with the stress revealed by the test has caused numerous references that cause us to forecast this. There is a risk that this is seen as a substitute for conventional tightening, which it does while leaning against sterling strength."