Case for action if credit grows faster than GDP – BOE’s Cunliffe

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Feb 9, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
    Likes Received:
    Speaking at the British Property Federation Residential Conference, in London, BOE’s deputy governor for financial stability Sir Jon Cunliffe noted that the central bank will keep a watch on the credit growth and would take appropriate action if credit grows faster than GDP.

    Key Quotes:

    If credit began again to grow faster than GDP, I would want to think about action to manage financial stability risk sooner rather than later

    The position is vulnerable to upward shifts in interest rates without a similar increase in incomes

    To the extent that the fall in interest rates was the result of structural factors that are likely to last, the increase in household debt is more likely to be sustainable
    For more information, read our latest forex news.

Share This Page

free forex signals