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10/8/2021, 11:51 AM (Source: TeleTrader)
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BoE: Increased risk-taking in global financial markets

The Bank of England (BoE) said on Friday that "there is evidence that risk-taking remains elevated in a number of markets relative to historic levels." It stated that, following actions taken by central banks to limit the impact of the pandemic crisis, "risky asset prices have increased and, in a number of markets, asset valuations appear elevated relative to historical norms." It warned "asset valuations could correct sharply," resulting in negative consequences for market functioning and financial conditions.

Turning to cryptocurrencies, the BoE stated that "direct risks to the stability of the UK financial system from cryptoassets are currently limited." However, it cautioned that "regulatory and law enforcement frameworks, both domestically and at a global level, need to keep pace with developments in these fast-growing markets in order to manage risks and to maintain broader trust and integrity in the financial system."

Baha Breaking News (BBN) / DJ