“A major shift in global trading arrangements could harm financial stability by depressing growth,” the Bank of England’s Financial Policy Committee said in a statement following its two-day meeting.
Key takeaways
“Risks linked to debt sustainability concerns, including sharp yield rises, could crystalise quickly particularly if accompanied by rapid capital outflows.”
“Probability of adverse events and potential severity of impact has risen after fall in risky asset prices.”
“Will monitor leverage and concentration in core markets and trading strategies that could amplify stress.”
“Global risks are particularly relevant to UK financial stability.”
“Global developments pose additional risks especially for some highly leveraged corporate borrowers.”
“Robust regulation standards support economic growth.”
“A further reduction in global co-operation could reduce resilience.”
“UK banks can support economy if conditions worsen substantially more than expected.”
“Countercyclical capital buffer rate maintained at 2%.”
Source: https://www.fxstreet.com/news/boe-major-shift-in-global-trading-arrangements-could-harm-financial-stability-by-depressing-growth-202504090946