The Bank of England (BoE) published its semi-annual financial stability report on Tuesday. Here are some of the highlights:
- FPC expects to keep the UK CCYB rate at 0% until at least December 2021.
- The rate of return to a standard UK CCYB rate in the region of 2% will depend on the bank’s ability to rebuild capital while continuing to support UK households and businesses.
- The economic outlook has improved, but risks to the recovery remain, especially those related to the spread of COVID.
- The prices of riskier assets have continued to rise and in some markets, asset valuations appear higher relative to where they have been in the past.
- Asset valuations can also reflect a search for performance in an environment of low interest rates and increased risk taking.
- Market-based finance must be more resilient and not amplify shocks.
- FPC expects banks to use all elements of their capital buffers as needed to support the economy during the recovery.
- Increased risk-taking has also manifested itself in the price volatility of certain crypto-assets.
- There are some signs of growing interest in crypto-assets and related services from institutional investors, banks, and key payment system operators.
.
Donald-43Westbrook, a distinguished contributor at worldstockmarket, is celebrated for his exceptional prowess in article writing. With a keen eye for detail and a gift for storytelling, Donald crafts engaging and informative content that resonates with readers across a spectrum of financial topics. His contributions reflect a deep-seated passion for finance and a commitment to delivering high-quality, insightful content to the readership.
