BOE Financial Stability Report: Outlook for UK financial stability "remains challenging"

Latest BOE FSB report just published 30 Nov

• RBS failed BOE 2016 bank stress test of 7 lenders
• Barclays missed pass mark but won't have to bolster capital
• Stan Chart also showed some capital shortfall
• HSBC,Nationwide,Lloyds,Santander all passed stress test
• EU and UK economies could suffer if EU rapidly loses access to UK-provided fin services
• risk of further price falls in UK commercial real estate
• UK's large c/a deficit vulnerable to a reduction in foreign appetite
• sharp narrowing in c/a would worsen trade-off btwn growth and inflation

Full BOE report here

Cautionary words but pound not fazed. GBPUSD a tad lower though at 1.2470 on general supply and EURGBP dipping to 0.8517. GBPJPY finding a few sellers as USDJPY caps above 112.85 again.

BOE -Financial stability outlook " remains challenging"