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 claimed.
The stress test performed by the BoE will likely appease British businesses and households who are concerned with the rising interest rates and high inflation.
The results show that the 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 higher than the government’s target of 2 percent. The bank rate has been recently increased to 5 percent….