November 29, 2024 10:30 GMT
BOE: BOE: FPC SAYS Risks To Global Outlook Increased
BOE
Uncertainty and risks around the global outlook have increased over the last quarter, the Bank of England Financial Policy Committee said Friday, with the risks particularly relevant to the UK's financial stability.
- Global risks associated with geopolitical tension, global fragmentation and pressure on sovereign debt levels remain material and have increased.
- Valuations across several asset classes have risen further, pushing risk premia even lower, despite outlook risks.
- UK households and corporates remain resilient in aggregate. The banking system remains in a strong position to support then even if the economy worsens more than expected.
- The BOE FPC has kept the CCyB at the 2% neutral level.
- The Bank's stress test will switch to a biennial test from the end of 2025.
- The BOE's first system-wide exploratory scenario test (SWES) found the repo market resilience was key to supporting core markets.
140 words