Should you loosen your belt when you’re on a diet?

Posted Posted in Bank of England, Brexit, Capital requirements

I have mixed feelings about Mark Carney’s speech yesterday, when he announced that the Financial Policy Committee would ease banks’ capital requirements, encouraging them to lend. Relaxing capital requirements to ease funding availability for individuals and SMEs may work. It’s a bit like targeted QE and if we can stabilise sentiment and continue growth with a weaker pound, it may prove a masterstroke. But I can’t help the nagging feeling that it’s a bit like […]