BOE FPC: Entrenched Brexit uncertainties, against backdrop of weaker global growth, weighing on UK economy

The Bank of England (BOE) is out with its minutes of the Financial Policy Committee (FPC) meeting, with the key highlights found below.

Entrenched Brexit uncertainties, against backdrop of weaker global growth, weighing on UK economy

Core of the UK financial system is prepared for worst-case Brexit.

Some disruption to cross-border financial services is possible after a no-deal Brexit, mostly affecting the EU.

Further price volatility to be expected in a disorderly Brexit.

Keeps the UK countercyclical buffer rate at 1%.

Will keep robust prudential standards in the UK after Brexit, resilience levels at least as strong as now.

US-China trade war poses biggest near-term risk to the global economy.

Future global economic shocks could be amplified by material debt vulnerabilities, structural illiquidity, reduced space for some monetary authorities to respond.

Still thinks mismatch between redemption terms and liquidity of some funds' assets has the potential to be a systemic risk.

Will consider in Q4 further potential policy and supervisory tools to reduce the stock of legacy LIBOR contracts.

EU action needed to avoid customers having to move 42 trillion pounds in derivatives from the UK by year-end.

The Cable is seen fading a spike to 1.2292 highs to now trade near 1.2250 levels. Despite the latest leg down, the pound remains underpinned by the latest reports of EU concession on Irish backstop.

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.

Feed news

FXStreet Trading Signals now available!

Access to real-time signals, community and guidance now!

Latest Forex News

Editors’ Picks

EUR/USD pressured around 1.13 after jump in US jobs

EUR/USD is trading around 1.13, down after US Non-Farm Payrolls shocked with a leap of 2.5 million jobs in May, contrary to all projections. The greenback is gaining while stocks are falling, a correlation breakdown. ECB stimulus previously supported the euro.


GBP/USD retreats from highs

GBP/USD is trading below 1.27, off the highs. The pound is struggling after Chief EU Negotiator Barnier reported little progress in Brexit talks. Robust US jobs support the dollar.


Gold sees weekly closing below $1700 - a caution for bulls

The steady decline in Gold prices (futures on Comex) accelerated on Friday, as the rates closed the week below the 1700 mark for the first time in three weeks at 1688.35. A weekly closing below the key 1700 level is unlikely to bode well for the bulls.

Gold News

Institutional demand exceeds Bitcoins supply

Greyscale floods the market with fresh money to satisfy the demand of its clients. Investors, willing to pay a 29% surcharge for exposure to Bitcoin without suffering the legal and operational inconveniences. Market remains at risk on the verge of new bullish territory.

Read more

WTI rallies above $39 as focus shifts to OPEC+ meeting

Crude oil prices built on Thursday's modest gains and rose sharply on Friday boosted by the upbeat market mood optimism surrounding Saturday's OPEC+ meeting. 

Oil News