BOE Official Sees ‘Exuberance’ as Top Financial Stability Risk
- Bailey tells MPs private credit is ‘opaque’ and needs watching
- Mortgage borrowers and firms show no signs of stability stress
The Bank of England in London
Photographer: Daniel Leal/AFP/Getty ImagesThis article is for subscribers only.
Investor exuberance as interest rates fall and growth recovers is one of the biggest risks to financial stability this year, according to a Bank of England policymaker.
Markets may ramp up risk levels dangerously as economic conditions improve and volatility reduces, Jonathan Hall, an external member of the BOE’s Financial Policy Committee, said Wednesday in testimony to the UK Parliament.