The Bank of England was holding emergency talks with international counterparts last night amid rising concerns as the crisis deepens in Swiss bank Credit Suisse Group AG, the Telegraph reported on Wednesday per Reuters.
Key quotes
Bank of England officials were in talks with counterparts, as they all raced to assess the potential impact of the problems at Credit Suisse, a ‘systemically important’ institution that is enmeshed in the global financial system.
Experts predicted that it will require a bailout to prevent a collapse that would rock banks and pension funds around the world.
The crisis was in contrast to the improving picture that the Chancellor attempted to paint as he unveiled forecasts from the Office for Budget Responsibility that the UK will avoid a recession this year.
The Chancellor said the brighter outlook was “proving the doubters wrong” as the latest projections showed inflation falling to 2.9 per cent by the end of the year.
Mr Hunt said the economy was now “on the right track” after the Office for Budget Responsibility (OBR), the government's tax and spending watchdog, said any downturn would be “shorter and shallower” than predicted just four months ago.
However, senior economists warned that the collapse of Credit Suisse had the potential to upend a recovery from the twin shocks of pandemic and war in Ukraine.
GBP/USD licks its wounds
GBP/USD picks up bids to 1.2065 to pare the biggest daily loss in a week during Thursday’s inactive session.
Also read: Forex Today: Dollar and Yen jump as panic takes over markets
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