BoE: Brexit volatility damaging UK's financial stability outlook

Could lead to further sterling depreciation

Laura Dew
clock • 2 min read

The Bank of England has warned the outlook for financial stability in the UK has significantly worsened in light of volatility ahead of the European referendum.

In a report by the Financial Policy Committee, led by governor Mark Carney (pictured), of its latest meeting on 23 March, the body said the upcoming June referendum was the "most significant near-term domestic risk". Other risks globally included the increase in interest rates in the US, capital outflows from emerging markets and falls in the price of risky assets. "The FPC judges the outlook for financial stability in the UK has deteriorated since it last met in November 2015. Some pre-existing risks have crystallised, drawing on the resilience of the system. Other risks stemming fro...

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