Bank of England concerned by ‘vulnerability’ to interest rate increases
The Bank of England is concerned by the "vulnerability" of borrowers and financial institutions to a sharp rise in long-term interest rates, and admits the potential consequences are "not fully understood".
In its latest Financial Stability Report, released today, the Financial Policy Committee (FPC) warned that if global interest rates were to suddenly rise then 40% of UK banks' assets would "revalue immediately", while households could suffer as a result of their "historically high" levels of
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