The capital and liquidity positions of banks in the UK remain strong, according to the latest stress tests applied by the Bank of England to its financial system.
“Our latest stress test shows that the banking sector is resilient even in very challenging economic scenarios. This put to the test the ability of the largest UK banks and mortgage lenders to cope with another severe economic shock, in addition to the economic impact of the pandemic ”, can be read in the Financial Stability Report published yesterday.
The Financial Stability Report reveals the opinion of the Financial Policy Committee on the stability of the UK financial system and what it is doing to eliminate or reduce any risk.
UK households have remained “resilient” despite the end of the licensing scheme and other supportive Covid-19 measures, the body said.
“The UK and world economies have continued to recover from the effects of the pandemic. But uncertainty persists about the risks to public health and the economic outlook, ”the agency said in the document.
“There are short-term pressures on supply and inflation, and Covid could have a greater impact on activity, especially given uncertainties about whether new variants of the virus reduce the efficacy of the vaccine,” he added.
The report comes three days before central bank authorities announce their monetary policy decision.
Life gets more expensive
According to the National Statistics Office, the cost of living index rose 4.2% in October, its highest rate in almost 10 years.
This inflation, which tracks the cost of living over time, has led analysts to predict an increase in interest rates from their current all-time low of 0.10 percent. But recently doubts have arisen due to the spread of the Omicron variant.
At least one person died in the UK from the Omicron variant, Prime Minister Boris Johnson said, warning against the belief that the new strain is less deadly than previous ones.
Reference-www.eleconomista.com.mx