lundi 30 mars 2015
BOE 2015 Stress Tests To Probe Risks Stemming From Deflation
Posted on 08:52 by nice news
The Bank of England's 2015 stress tests will explore the vulnerabilities of UK banks to risks arising outside these shores and will look at the impact of a deflationary environment.
The updated stress tests, published Monday, highlight the evolution of economic risks. Deflation has emerged at the hot topic this year and with the UK economy continuing to grow around trend, the tests highlight the risks to the domestic economy from overseas.
Headline UK inflation fell to zero in February and is expected to turn negative in March, and deflation is already present in the Eurozone and elsewhere.
"The 2015 scenario explores the effects of a deflationary macroeconomic environment which in turn is association with a reduction in Bank Rate and extraordinary monetary policy stimulus measures," the BOE says.
Another key change in the 2015 stress tests from the 2014 vintage is that this year's tests will explore banks' vulnerabilities to adverse foreign shocks. The 2014 tests highlighted domestic risks.
The BOE said "the hit to economic activity assumed this year is larger for the euro area and emerging market economies."
The overall hit to world is slightly larger than assumed in the 2014 stress tests.
This year's tests will also highlight risks
The updated stress tests, published Monday, highlight the evolution of economic risks. Deflation has emerged at the hot topic this year and with the UK economy continuing to grow around trend, the tests highlight the risks to the domestic economy from overseas.
Headline UK inflation fell to zero in February and is expected to turn negative in March, and deflation is already present in the Eurozone and elsewhere.
"The 2015 scenario explores the effects of a deflationary macroeconomic environment which in turn is association with a reduction in Bank Rate and extraordinary monetary policy stimulus measures," the BOE says.
Another key change in the 2015 stress tests from the 2014 vintage is that this year's tests will explore banks' vulnerabilities to adverse foreign shocks. The 2014 tests highlighted domestic risks.
The BOE said "the hit to economic activity assumed this year is larger for the euro area and emerging market economies."
The overall hit to world is slightly larger than assumed in the 2014 stress tests.
This year's tests will also highlight risks
BOE 2015 Stress Tests To Probe Risks Stemming From Deflation
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