BoE FPC: Risks to UK financial stability are broadly unchanged since June

Dhwani Mehta FXStreet

The Bank of England (BoE) Financial Policy Committee (FPC) said in a quarterly statement on Wednesday, the “risks to the UK financial stability are broadly unchanged since June.

Additional takeaways

Valuations of equities and other asset classes are "stretched", susceptible to sharp correction.

Survey shows record-high percentage of financial firms worried about geopolitical risk.

Maintains counter-cyclical capital buffer at 2%.

UK households and corporate borrowers resilient to high interest rates overall.

Some small businesses and private equity backed firms remain under pressure from high rates.

UK banking system remains in a strong position to support lending.

High public debt levels in major economies could have consequences for the UK financial stability.

UK leverage ratio framework remains appropriate after annual review.

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

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