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Our response to BoE discussion paper on macroprudential tools

We support the paper's aims but argue against LTV and LTI ratios as they do not take individual circumstances into account.

We recognise that the FPC needs its own policy instruments to be able to act to mitigate risks to financial stability. But limits on the terms and conditions of certain transactions, notably limits on loan-to-value and loan-to-income ratios, are undesirable because they do not sufficiently take individual circumstances into account. Click below to read the full response:

Our response to BoE discussion paper