BoE's Bailey: Geopolitical risks may be underestimated by markets

BoE Governor Andrew Bailey emphasized the importance of geopolitical uncertainty in assessing financial stability. He cautioned that current market evaluations may underestimate risks stemming from global political tensions and institutional challenges. Recent global events could increase market volatility and affect liquidity, leading to broader implications for financial policy and investment strategies. Investors are urged to account for potential impacts of political instability on market dynamics. Economists are discussing the need for risk premiums in light of recent economic indicators and central bank statements.