BoE flags global risks in ‘opaque’ commodities market
LME disruption reveals “highly leveraged” participants within financial system
Commodity markets are volatile, prices elevated and liquidity thin, the Bank of England warned today (July 5), problems that are exacerbated by the market’s opacity.
Meanwhile, the economic outlook for the UK and globally has “deteriorated materially”, in large part due to higher commodity prices, BoE governor Andrew Bailey said at the launch of the central bank’s latest financial stability report.
Vulnerabilities in “opaque” commodities markets and their links to the broader financial system
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