The Bank of England’s Jon Cunliffe has said macro-prudential tools the central bank first tested five years ago have proved beneficial, as more evidence emerges on their effectiveness.

Speaking in Portugal, the deputy governor noted it was sometimes necessary to target borrowers, rather than lenders, with macro-prudential policy. In the BoE’s case, it imposed limits on high loan-to-value lending, and required banks to conduct an affordability test before granting customers mortgages.

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