FTSE 100 Live: 'Risk of sharp correction in asset prices increased' - Bank of England
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The Bank of England has warned of the risk of a “sharp correction” in asset prices, in its latest financial stability report. The central Bank said: “Investors in financial markets expect the economy to continue to recover and inflation to fall. They are putting less weight on risks that might cause weaker growth or interest rates to stay higher than expected. As a result, the prices of many assets such as shares and bonds have gone up. Their value appears to be high relative to historical norms, in the context of risks to the economic outlook. That means there is a greater risk of a sharp fall in asset prices, which could ultimately make it more costly and difficult for UK households and businesses to borrow.” It also warned that falling commercial property prices could hit investor confidence. It said: “The economic outlook for the UK has improved somewhat since our Financial Stability Report in December. But some risks to the stability of the UK financial system have increased. And parts of the global financial system remain vulnerable to stress.” But it also noted that the UK banking system is “strong enough to support households and businesses, even if the economy does worse than expected. “.

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https://www.standard.co.uk/business/ftse-100-live-27-march-h-m-s4c-results-smmt-car-figures-bank-of-england-mortgage-interest-rates-b1147891.html