The BoE will today come under new pressure to take on powers to restrict mortgage lending during a housing boom, in spite of claims by central bankers that the issue is so sensitive it should be left to politicians. (FT-More) The Commons Treasury Committee is opening an inquiry into what tools should be given to the BoE to maintain stability in the economy, with a focus on why it is reluctant to block riskier mortgage lending.
In recent weeks, as a Greek exit has become a more realistic prospect, UK banks have shifted focus away from credit risks to the potential operational risks that could be triggered by sudden introduction of a new Greek currency. Under pressure from the City regulator, banks have run multiple drills on what a return to the drachma would mean for their business. (FT-More)
iBoxx UK Agg month end extension seen at +0.06yrs.
View All Market Commentary
*Disclaimer: The information in the Market Commentaries was obtained from sources believed to be reliable, but we do not guarantee its accuracy. Neither the information nor any opinion expressed therein constitutes a solicitation of the purchase or sale of any futures or options contracts.