Bank issues warning over risks to stability

THE Bank of England has issued a warning about heightened global risks to financial stability.

- SAMUEL NORMAN

The central bank said “risks to financial stability have increased during 2025”.

“Global risks remain elevated and material uncertainty in the global macroeconomic outlook persists),” the Bank added.

The Financial Policy Committee (FPC) highlighted geopolitical tensions, the fragmentation of trade and financial markets, and pressures on sovereign debt markets as principal risk factors.

“As an open economy with a large financial centre, the UK is exposed to global shocks, that could transmit through multiple, interconnected channels,’ it added.

The Bank has also reinforced concerns regarding the potential for an artificial intelligence bubble.