The Bank of England (BOE) Governor Andrew Bailey said on Tuesday, the Financial Policy Committee (FPC) will remain vigilant towards risks and debt vulnerabilities.
Key quotes
Businesses in weaker sectors will be more vulnerable to higher financing costs.
FPC continues to review the calibration of mortgage market measures.
Asset valuations could adjust sharply if markets re-evaluate prospects for growth, inflation. or interest rates.
Reliance on a small number of cloud service providers could lead to financial stability risks.
Have no immediate plans to review guidance on bankers' bonuses.
Nothing has really moved forward on equivalence with EU.
We are ready to have discussions with EU on equivalence but nothing is happening on that front.
We are watching asset prices very carefully.
Not true that all asset prices are too inflated.
Market reaction
GBP/USD remains pressured towards 1.3850 on the above comments, mainly weighed down by a broad-based US dollar’s rebound. The spot is down 0.09% on the day, trading at 1.3866, as of writing.