While presenting the Financial Stability Report on Wednesday, Bank of England (BoE) Governor Andrew Bailey noted that firms are telling them that higher uncertainty is delaying investment decisions, including capital raising, per Reuters.
Key takeaways
“Caution on business investment will have some effect on employment.”
“We are comfortable with 15% loan-to-income limit for mortgage lending flow being used.”
“We would like to see this 15% aggregate limit more used.”
“Steepening in yield curves for bonds is not particularly UK-focused.”
“Global steepening of bond curves will have to be looked at carefully in the annual QT decision.”
Market reaction
GBP/USD stays under modest bearish pressure on Wednesday and was last seen trading near 1.3580, losing 0.1% on a daily basis.