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.