FPC Sanguine On Brexit Risks

BoE's October Financial Policy Committee Summary and Record has just been released - very little in it from a market-moving perspective, with the assessment being fairly sanguine. Some quotes below:

• *Central bank interventions were necessary to stabilise financial markets after an abrupt and disruptive 'dash for cash' in March. Although markets have continued to function well since, further episodes of market disruption are possible. The underlying weaknesses that caused problems in March have not yet been addressed. We are working with other central banks and regulators to ensure financial markets can continue to serve the economy even under stress."
• "The UK banking system remains resilient to a very wide range of possible economic outcomes."
• "Most risks to UK financial stability that could arise from disruption to cross-border financial services have been mitigated, even if the transition period ends without the UK and EU agreeing further arrangements for financial services. This reflects extensive preparations made by authorities and the private sector. However, some disruption to financial services could arise, particularly for EU-based clients, even if it does not pose a risk to financial stability."

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