Commenting, Deputy Governor David Clementi said:
“On balance we judge that the risks to stability from global imbalances and exaggerated equity market prices have moderated somewhat over the past six months. But there are still material risks. Global imbalances persist, risks in the wider economic environment are probably greater because of rapid structural changes, and equity markets remain volatile. Financial intermediaries and investors, as well as the authorities, need to keep these risks in mind. By being transparent about our own assessment of downside risks, I hope the Bank’s Financial Stability Review can help that process."