Markets may remain volatile but that does not mean financial instability, BOE’s Cunliffe says

( October 18, 2022, 12:49 GMT | Official Statement) -- MLex Summary: Financial markets may continue to show volatility in the coming weeks, Jon Cunliffe, the Bank of England’s deputy governor, has told lawmakers, but that does not mean financial instability. In a letter to UK Parliament’s Treasury Committee, Cunliffe gave more detail on the BOE’s September intervention following the government’s “mini-budget,” which led to market turmoil and threats to pension fund investments. The BOE’s action “reduced a material risk to financial stability,” Cunliffe said, but the operation did not intend to prevent markets from making necessary adjustments. “Financial stability is not the same as market stability or the avoidance of any disruption to financial markets,” he wrote.Statement follows. Letter attached....

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Markets may remain volatile but that does not mean financial instability, BOE’s Cunliffe says

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