BOE has published the record of the Financial Policy Committee’s (FPC) meeting held on 14 September. As previously reported in FReD, FPC has extended the policy recommendations adopted in June, given that risks to financial stability have not altered since then in a way that gives any reason to change the recommendations. These recommendations covered the loss-absorbing capital cushion, the disclosure of the leverage ratio and the loosening of microprudential liquidity guidance in the light of the contingent liquidity BOE has made available. FPC also discussed drawing up statements on how its tools and powers will work and their likely impact. It decided that, although clear guidance on expectations is needed to hold FPC to account, applying these tools and powers requires flexibility and judgement-based policy since financial stability can crystallise in different and unexpected ways. (Source: Record of FPC Meeting 14 September)