BoE FPC: maintains CCyB rate at its neutral setting of 2%; notes substantial increase in the use of leverage in equity markets; on some metrics, [equity] valuations have also become more stretched; UK banking system remains appropriately capitalised
- Developments in the Middle East have affected the global risk environment materially. Despite this, the UK financial system has remained resilient and has continued to support the UK real economy, emphasising the benefits of the resilience that has been built.
- Recent rapid advances in frontier Artificial Intelligence capabilities have increased financial stability risks related to cyber and operational resilience.
- Risky credit markets, including private credit, remain vulnerable to a tightening in financing conditions.
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