The UK banking system would be able to withstand a severe economic turbulence, deeper than the 2008 financial crisis, a report by the Bank of England (BoE) has showed.
The stress test performed by the BoE would likely appease British businesses and households who are concerned with the rising interest rates and high inflation.
The results show that UK’s biggest lenders have built up resilience in recent years to withstand economic shocks, including deep and simultaneous recessions and sharp falls in asset prices.
The current inflation rate is 8.7 percent, which is significantly greater than the government’s target of two percent. The bank rate has been recently increased to five percent….