Latest BOE FPC MInutes now published 6 Dec

  • Maintained the UK countercyclical capital buffer (CCyB) rate at 0%, and reaffirmed that it expected to maintain a UK CCyB rate at 0% until at least June 2017, absent any material change in the outlook. It continued to support the clear supervisory expectation of the Board of the Prudential Regulation Authority (PRA) that firms should not increase dividends and other distributions as a result of the UK CCyB rate being maintained at 0%
  • Reviewed and agreed to maintain without change the Recommendations that it had made in June 2014 to insure against the risk of a marked loosening in underwriting standards in the owner-occupier mortgage market and a further significant rise in the number of highly indebted households.
  • At a headline level, since the UK referendum on membership of the European Union, UK financial stability had been maintained through a challenging period of uncertainty around the domestic and global economic outlook. Substantial moves in financial market prices had not been amplified by the UK financial system, and core financial markets had functioned effectively. Indicators of UK economic activity and business sentiment had recovered from their low points immediately following the EU referendum and were materially stronger than had been expected in July. 4.
  • However, the economic outlook remained weaker than in the first half of the year. The UK economy had entered a period of adjustment following the referendum, and it would take time to clarify the United Kingdom's new relationships with the European Union and the rest of the world, as well as for the UK economy to adjust to these changes. The nature of, and path to, these new relationships would be the subject of forthcoming negotiations between the UK Government and the European Union, and the orderliness of the adjustment would influence the risk to financial stability. Further, there was an increase in uncertainty around the global macroeconomic outlook following a new administration in the US and given the forthcoming Italian referendum and a number of elections in the euro area

Full report here