BoE to ease rules for lenders, UK public sector employers aim for hefty pay rise
|“The Bank of England (BoE) is preparing to water down changes to its post-crisis rulebook after lenders warned plans to raise bank buffers will strangle small businesses and harm the economy,” said The Telegraph during the weekend.
“It is understood that regulators are examining ways to lower the burden on banks when the UK adopts new international capital rules from 2025,” adds the news.
The news also states that the BoE is also considering grandfathering existing loan arrangements and adopting a common sense approach towards risk that high street banks say will tie-up less money on balance sheets that they will use to boost the economy.
Additionally, Reuters quotes a survey to unveil a news on Monday stating, “British public sector employers plan the biggest pay increases in over a decade and private sector deals are set to remain high, potentially adding to worries at the Bank of England.”
The news also adds that the Chartered Institute of Personnel Development (CIPD) said expected median pay settlements in the public sector for the coming 12 months rose to 3.3%, up from 2% in the previous three months, and the highest level since records started in 2012.
Elsewhere, UK Treasury Secretary and Chancellor Jeremy Hunt said that consumers and companies need to be able to access their money quickly in an event of a bank collapse.
“We're doing a review of what might be necessary,” UK’s Hunt adds.
The policymaker also termed inflation as the biggest risk to the UK inflation.
Also read: GBP/USD Price Analysis: Cable bears eye further downside towards 50-DMA
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