BoE financial stability report
The Bank of England released its Financial Stability Report today. According to the paper, Britain’s financial stability outlook remains clouded by weak global recovery and euro zone’s problems.
The regulator warned banks and borrowers about risks from a potential abrupt rise in global interest rates and said banks might need to further bolster their capital cushions to protect against this. BoE recommended a review of banks’ exposure to interest-rate risk. The review will be carried out by the Prudential Regulation Authority, which will report back in September.
Full version of the report is available here.
As a result, bearish pressure on GBP/USD increased, pulling the pair to $1.5360.