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Financial Policy Committee Record – April 2025

ended 09. April 2025

The Bank of England has just published a record of meetings held on 4 and 8 April. It says the global risk environment has deteriorated, and uncertainty has intensified. A range of risky asset prices, led by those denominated in US dollars, have declined sharply. The probability of adverse events, and the potential severity of their impact, has risen. Several risks associated with the fragmentation of global trade in goods, and financial markets, have intensified. A major shift in the nature and predictability of global trading arrangements could harm financial stability by depressing growth. A further risk is a reduction in global co-operation, which could reduce resilience. Geopolitical tensions, and risks associated with sovereign debt pressures globally, have also risen. As the UK is an open economy with a large financial sector, global risks are particularly relevant to UK financial stability. Any thoughts, whizz them across.

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Pete Mugleston
Mortgage Advisor & Managing Director at onlinemortgageadvisor.co.uk
The Bank of England’s latest record highlights just how vulnerable the UK is to escalating global risks. As an open economy with a major financial sector, any disruption to global trade, financial markets, or geopolitical stability has direct consequences here. A fragmented global landscape not only dampens growth but also makes it harder to respond to future shocks. For borrowers, businesses, and investors, this rising uncertainty could mean more volatility and cautious policymaking ahead. While we haven’t seen the full impact yet, the warning signs are flashing, and the need for economic resilience has never been clearer.