Archived article
Please note that tax, investment, pension and ISA rules can change and the information and any views contained in this article may now be inaccurate.
The UK’s major banks are ‘resilient’ in the face of global turmoil, but households and business still face the risk of higher borrowing costs as a result, according to the Bank of England.
The central bank’s Financial Policy Committee added that there is an ‘urgent need’ to bolster market-based finance, such as some hedge funds, amid market volatility.
It came as the bank said that UK households remain ‘squeezed’ by higher living costs and mortgage payments.
However, it said more households are expected to be well positioned to pay off debts than was expected in December 2022 due to cooling energy prices and an improved UK employment outlook.
It comes a week after the bank last week hiked interest rates for the 11th time in a row to 4.25% and Governor Andrew Bailey said he is more optimistic that the UK can avoid recession.
The FPC stressed that UK banks have seen their profitability increase recently, amid higher interest income due to rates increases, and ‘are not exposed to material direct losses’ related to Silicon Valley Bank or Credit Suisse Group AG.
source: PA
Copyright 2023 Alliance News Ltd. All Rights Reserved.