The Bank of England published the latest Financial Stability Report today. In the opening remarks of the press conference, BoE Governor Mark Carney warned that “events of the past few months are a reminder that many of the most important risks to financial stability in the United Kingdom originate beyond our shores.”
The risks include “recent tightening in global financial conditions” that could be a “‘precursor to a much more substantial snapback in world interest rates”. There could be “more challenging bank, corporate and sovereign funding conditions.”
Besides, “Rising protectionist sentiment could sap some of the current strength of the global economy and reduce the size of sustainable external imbalances.”
In addition, “the complete set of mitigants to the risks of a cliff-edge Brexit also rely on the efforts of EU authorities”. Lastly, “cyber risks to UK financial services could originate from anywhere on the planet.”
Below is the press conference.
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