BoE consults on removing macro-prudential rule
Affordability test has drawbacks and may no longer be needed, given other tools, says FPC
The Bank of England plans to remove one of its macro-prudential rules, an affordability test applied to new mortgage lending.
In a consultation, the BoE notes the test has some drawbacks and may no longer be needed given the presence of other tests and macro-prudential safeguards.
The central bank’s financial policy committee (FPC) says there were “concerns” over aspects of the test, which was first introduced in 2014. In particular, the “stress rate” used in the test has remained “broadly
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