Commenting on the recommendations of the Bank of
"This is a cautious and clever intervention by the Bank in its first major foray into macro prudential policy. The lending cap will have little impact on the market in the short-term, but sets an important backstop to ensure indebtedness does not get out of control and pose a risk to the broader economy moving forward.
"The policy also addresses the specific risks of the
"In terms of the new affordability tests, some lenders were already conducting such stress tests in line with expected rises in interest rates. So this is just instituting good practice across the market.
"Overall this is a proportionate step by the FPC that focuses on personal indebtedness rather than house prices."
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