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MNI: BOE - Challenging Risk Environment; Households Resilient

(MNI) London
BOE says the risk environment is still challenging but households have been resilient so far; asset volatility a threat

The Bank of England in its Financial Stability Report said that the financial risk environment remained challenging but that the households had proven resilient so far in the higher rate world.

The BOE report was based on data up until Nov 29 and since then market rate expectations have fallen sharply, highlighting the volatility in asset pricing. On the BOE's projections just over half of UK mortgagees have been re-priced since the start of the rate tightening cycle in late 2021,  with monthly mortgage changes projected to rise by GBP240 by end 2026, down from GBP250 in the July FSR.

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The Bank of England in its Financial Stability Report said that the financial risk environment remained challenging but that the households had proven resilient so far in the higher rate world.

The BOE report was based on data up until Nov 29 and since then market rate expectations have fallen sharply, highlighting the volatility in asset pricing. On the BOE's projections just over half of UK mortgagees have been re-priced since the start of the rate tightening cycle in late 2021,  with monthly mortgage changes projected to rise by GBP240 by end 2026, down from GBP250 in the July FSR.

Keep reading...Show less