The Bank of England today released their official financial policy statement in summary of the meeting on March 23rd, and presented several implementation strategies to use this year including bank stress tests and new standards for the British Buy-to-Let schemes in consideration of the risks of a Brexit and global headwinds. The statement noted that financial stability in the UK had deteriorated in the past quarter due to global and domestic troubles, and has affected the UK's current account deficit which still relies heavily on foreign direct investment.
Regarding a potential Brexit, the FPC report said that the channels of uncertainty associated with the June 23rd referendum were considered in the course of the latest vote. The report also said that the one of the biggest threats was to the Sterling's exchange rate and further depreciation. While there was notable impact on the British Pound following the release of the FPC, the GBPUSD pair was seen trading higher in today's session following yesterday's strong gains. The markets are treading cautiously today as Fed Chairwoman Janet Yellen is due to speak at an event later in New York, which could provide further momentum. US equities futures expect to hear dovish comments from the Fed chair in light of slow growth forecast for GDP.
BoE Presents Financial Policy Statement
Andamento del mercato - 29/03/2016