UK Firms' Resilience Highlighted in BoE Report

The Bank of England's Financial Policy Committee (FPC) has released its July financial stability report, revealing that the majority of UK-based companies are well-equipped to handle higher tariffs and global economic shocks. "Despite some vulnerabilities, UK corporates, in aggregate, can continue to service their debts even amidst further global shocks," the FPC noted, emphasizing the ongoing uncertainty in the global macroeconomic landscape.

Banking Sector's Flexibility

In addition to corporate resilience, the BoE highlighted the banking sector's capacity to issue more mortgages at high loan-to-income (LTI) levels. Individual lenders may exceed the 15% threshold for high LTI ratio lending, while the sector overall maintains a 15% cap, ensuring a balanced approach to mortgage lending.