In the minutes of its monetary policy statement, the Bank of England (BoE) said that the Financial Policy Committee judges that there is evidence that the risk taking remains high in several markets relative to historical levels, according to Reuters.
“Asset valuations could be sharply corrected.”
“There are signs of continued loosening of hedging standards and increased risk taking in some investment banking businesses.”
“Direct risks to the stability of the UK financial system from crypto assets are currently limited.”
“The financial institutions should take a cautious and prudent approach to any adoption of crypto assets.”
These comments do not appear to be having a significant impact on the performance of the British pound against its rivals. At time of writing, the pair is unchanged on the day at 1.3615.