UK: Busy day on the financial stability side - TDS

Research Team at TDS, suggests that it’s going to be a busy day on the UK financial stability side, but there should be little bearing on Thursday’s MPC meeting.

Key Quotes

“First up at 9:30am BST is the release of the FPC’s record of their 28 June meeting, where they decided to cut the countercyclical capital buffer (CCyB) by 50bps. That key policy prescription was announced last week, so this record is likely to simply provide more details of the discussion amongst FPC members, though it might provide further insights into other policy measures under consideration.

At 10am BST Governor Carney appears with FPC colleagues before the Treasury Select Committee to discuss last week’s Financial Stability Report. As he is under monetary policy purdah, he can’t say anything about Thursday’s MPC meeting, but the question of bank profitability at low interest rates (and whether they can be cut to—or below— zero) is likely to come up in the session.”