BOE FPC to evaluate risk of sterling dropping by 32% to hit 85 cents

CNBC reports the following headlines from the latest meeting minutes from the BOE's FPC (Financial Policy Committee) published on Monday morning.

Key Points:

Financial stability risk is broadly unchanged since the November meeting

The policy uncertainty is high in a number of countries

Will launch a review into quality of new consumer lending

UK household indebtedness remains high by historical standards and has begun to rise relative to incomes

Consumer credit has been growing particularly rapidly

Will assess the financial stability implications of firms' plans to adapt to the United Kingdom's withdrawal from the European Union

Will oversee banks contingency plans to handle a range of possibilities arising from Brexit talks

Will test the risks associated with sterling dropping by a further 32% from today's level to languish at a low of 85 cents by year-end.

Want to avoid any spillovers from any sudden adjustments to banks business models

2017 stress tests will test short-term and long-term, scenarios