FXStreet (Delhi) – Prashant Newnaha, Rates Strategist at TD Securities, suggests that rumours are that the FPC might raise the countercyclical capital buffer on banks to curb excess lending in such a low interest rate environment. Key Quotes “With lift-off expected in May 2016, increases in Bank Rate will be gradual, and a higher CCB might be the right policy tool to eventually use to help keep credit growth in check while the MPC takes their time. But ultimately an increase wouldn’t affect our policy rate expectations.” “Results of the 2015 stress tests will also be published. Also out is November’s manufacturing PMI, which we expect to increase firmly into expansion territory, rising to 56.5 (consensus is for a fall to 53.6). Spillovers from a very reading in the euro area PMI this month are likely to support UK manufacturing, as will the lagged effects from the slight depreciation in GBP seen in September and October.” For more information, read our latest forex news.