The UK banking system remains stable, but the resumption of mutual strikes between the US and Iran could negatively impact the country's financial stability, said Bank of England Governor Andrew Bailey:
Last month, the central bank of the UK kept the main interest rate unchanged, and at that time, Bailey noted that the risks associated with the war in the Middle East were at the lower boundary of the regulator's forecasts:
Today, speaking at a committee meeting of the Treasury, the central bank governor stated that a reservation was necessary as the situation is characterized by high instability, and the ceasefire agreement reached may be violated:
According to him, the cessation of peaceful negotiations and the resumption of strikes in recent days once again highlight the existing risks to financial stability:
Against the backdrop of a new wave of escalation, oil prices have risen, reaching their highest level in the past month, while the yield on UK government bonds has reached its highest level since May:
Additionally, investors have increased their estimates of the likelihood of tightening monetary policy by the Bank of England this year:
