Some highlights on BoE’s FPC statement from the March 12 meeting:-
- “Apart from those related to Brexit, domestic risks remain standard overall, and that risks from global vulnerabilities remain material.”
- Globally, “the principle risks are in debt markets”
- “Risks stemming from corporate debt in the United States have continued to build. “
- “Financial vulnerabilities in China remain elevated.”
- “Current account deficit remains large by international standards.”
- “Over recent quarters (the current account) deficit has been increasingly funded by capital inflows – rather than sales of foreign assets by UK residents – thus increasing the UK’s reliance on the confidence of foreign investors,”
- “The UK banking system could continue to support the real economy through a disorderly Brexit.”
- “The FPC judged that Brexit risks did not warrant additional capital buffers for banks. Developments since November have not changed this assessment.”
- “The FPC judges that existing crypto-assets do not currently pose a material risk to UK financial stability”
