The Bank of England's Financial Policy Committee has published the record of its latest meeting, at which it assessed the resilience of the UK financial system and the risks that require ongoing attention.
The committee judged that the UK financial system remains resilient but that several risks require vigilance. The possibility that interest rates could remain elevated for longer than markets expect was identified as a significant risk, as was the growth of private credit markets and the concentration of critical services in a small number of providers.
The committee maintained the countercyclical capital buffer at its neutral rate of 2 percent, reflecting its assessment that the overall level of risk in the financial system is neither unusually high nor unusually low. It said it was prepared to adjust the buffer in either direction if the risk environment changed.
The committee's deliberations are informed by a wide range of data and analysis, including the Bank's stress testing programme, its monitoring of financial markets, and its engagement with financial institutions and other regulators. The record provides a detailed account of the committee's assessment and the evidence on which it was based.
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