BBC News | Stock markets are too high and set to fall, says Bank of England deputy
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Bank of England Deputy Governor Sarah Breeden warned that global stock markets are “too high” and are likely to experience a correction, as current asset prices do not reflect the numerous risks facing the economy. She highlighted concerns about a possible simultaneous macro‑economic shock, over‑optimistic valuations in AI and other sectors, and the rapid growth of “shadow banking” through private‑credit funds that have not yet been tested in a downturn. A sharp market fall could reduce household wealth, curb consumer spending, make financing harder for businesses, and dampen hiring confidence. While Breeden did not predict when or how large a decline might be, she emphasized that the Bank’s focus is on ensuring the financial system is resilient to any such adjustment.
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#BoE #SarahBreeden #FTSE100 #AJBell #RussMould #
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