BoE unveils scenario for annual stress test
First exercise since framework update will simulate milder conditions than previous version
The Bank of England has unveiled the crisis scenario that will be used in its annual stress test of the UK’s largest lenders.
The 2025 Bank Capital Stress Test, launched today (March 24), will simulate a “severe global aggregate supply shock” that would cause the country’s GDP to fall by 5%. Inflation and unemployment would rise to 10% and 8.5% respectively, while global GDP would fall by 2% and world trade by 20%.
The scenario is slightly milder than last year’s, when the BoE simulated an 11%
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