BoE tightens countercyclical buffer as risks stabilise
Banks expected to meet higher rate without cutting lending, even as capital ratios dip
The Bank of England has raised its countercyclical capital buffer (CCyB), as policy-makers say risks have returned to a “standard” level after the impact of the Covid-19 pandemic.
The BoE’s financial policy committee set the buffer rate at 1% today (December 13), up from 0%. Banks will have until December 2022 to meet the new rate.
The FPC added that it expected to raise the CCyB to 2% in the second quarter of 2022, provided the economy evolves in line with the BoE’s forecasts.
“Before the
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