BOE Official Warns Interest Rate Rises Add Risk of Market Shock
- Breeden says QT may ‘reveal vulnerabilities’ after LDI crisis
- BOE wants new tools to span financial and monetary policy
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Higher interest rates and quantitative tightening may add to the risk of another financial market shock, according to the Bank of England’s executive director for financial stability.
Sarah Breeden said that as long as rates remain elevated, the BOE’s Financial Policy Committee needed to be alert to risk of another blow up following last year’s LDI pensions crisis.