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Following its meeting on Thursday, the Bank of England’s (BoE) Financial Policy Committee (FPC) noted that the economic activity was reduced sharply due to the COVID-19.

“Consistent with the sharp deterioration in the economic outlook, there have been very significant falls in a range of financial asset prices,” the FPC added and announced that it will publish its interim Financial Stability Report on May 7th.

Additional takeaways

“The interim report will assess risks to the UK financial stability and the resilience of the UK financial system to ongoing economic and market shocks.”

“The interim report will take into account the economic assessment to be set out in the May Monetary Policy Report.”

“The path of the economic activity associated with the current disruption is likely to differ markedly from previous stress test scenarios.”

“The economy is likely to contract more sharply in the stress test scenario in the near term, but expected to recover more quickly than the multi-year recession in previous stress tests.”

“The interim report will reflect unprecedented actions taken to help alleviate the severe cash flow problems facing households and corporates.”

Market reaction

The GBP/USD pair paid little to no mind to these remarks and was last seen trading at 1.2450, adding 0.55% on a daily basis.