BOE: Perceived likelihood of no-deal Brexit has risen

[vc_row][vc_column][vc_column_text]In its Financial Stability Report (FSR), the Bank of England warns of the risks of a no-deal Brexit and global financial vulnerabilities. Here are the highlights:

  • Perceived likelihood of no-deal Brexit has risen.
  • Market volatility will increase after a disorderly Brexit.
  • No-deal Brexit could cause material economic disruption.
  • UK banks have enough capital to handle a disorderly Brexit.
  • Sees risks in high debt levels, and corporate leverage.
  • Foreign investment to commercial real estate and leveraged loans has fallen 60%-80% in first quarter of 2019.
  • Mismatch in open-ended funds could pose systemic risks
  • Central bank will review how to address the issue of liquidity mismatch

GBPUSD is trading at 1.2536 close to daily high, while EURGBP trades at 0.8985 close to the daily low.[/vc_column_text][vc_column_text]Don’t miss a beat! Follow us on Twitter.

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