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Bank of England frees banks to lend more after Brexit

Central bank warns the outlook for the stability of the financial system has become ‘challenging’

Bank of England frees banks to lend more after Brexit
Photo: iStockPhoto

The Bank of England took steps Tuesday to shore up the UK economy following Britons’ surprise decision to exit the European Union, warning that the outlook for the stability of the financial system has become “challenging”.

The BOE's Financial Policy Committee said it agreed to lower capital requirements for UK banks in a move that should allow them to lend an extra £150 billion ($199 billion) to UK businesses and households to keep the economy flush with credit.

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