Bank of England issues critical risk warning

Minutes from the Financial Policy Committee meeting showed that uncertainty over growth and the path of interest rates in advanced economies has risen again due to the war in the Middle East. The increase in oil, natural gas and refined product prices was also cited as prolonging the negative supply shock affecting the global economy.

The BoE also said the rapid rise in AI-related borrowing has increased capital markets’ exposure to developments in the sector. Companies were urged to prepare for cybersecurity and operational risks linked to artificial intelligence, while the bank emphasized that the likelihood of vulnerabilities emerging simultaneously across financial markets has increased and that the overall risk outlook has deteriorated since July.