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The Bank of England (BOE) is out with its minutes of the Financial Policy Committee (FPC) meeting, with the key highlights found below.

Entrenched Brexit uncertainties, against backdrop of weaker global growth, weighing on UK economy

Core of the UK financial system is prepared for worst-case Brexit.

Some disruption to cross-border financial services is possible after a no-deal Brexit, mostly affecting the EU.

Further price volatility to be expected in a disorderly Brexit.

Keeps the UK countercyclical buffer rate at 1%.

Will keep robust prudential standards in the UK after Brexit, resilience levels at least as strong as now.

US-China trade war poses biggest near-term risk to the global economy.

Future global economic shocks could be amplified by material debt vulnerabilities, structural illiquidity, reduced space for some monetary authorities to respond.

Still thinks mismatch between redemption terms and liquidity of some funds’ assets has the potential to be a systemic risk.

Will consider in Q4 further potential policy and supervisory tools to reduce the stock of legacy LIBOR contracts.

EU action needed to avoid customers having to move 42 trillion pounds in derivatives from the UK by year end.