On 27 March 2026 the Bank of England’s Financial Policy Committee (FPC) reviewed the impact of a Middle‑East conflict that has caused a global supply shock. The committee noted that the shock will weigh on growth, raise inflation and tighten financial conditions, potentially triggering multiple financial‑stability vulnerabilities. Despite the heightened uncertainty, the FPC judged the UK banking system to be well‑capitalised, liquid and able to support households and businesses even under severe conditions. The committee maintained the counter‑cyclical capital buffer at 2 % and reiterated its support for a private‑markets stress‑testing exercise. It also asked the Bank and the Financial Conduct Authority to continue monitoring the use of advanced artificial intelligence in finance.
© Governor and Company of the Bank of England.
Summary adapted from the Bank of England website (https://www.bankofengland.co.uk ).
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