Bank of England Financial Stability Report–some out takes

B of E – Financial Stability Report

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“Investors’ search for higher yield has increased demand for riskier assets in recent years, including assets in emerging economies. Large capital flows into emerging economies have enabled credit levels in these countries to rise sharply. While credit growth in these economies has been less rapid than before the Asian financial crisis in the late 1990s, estimated credit to GDP gaps in most of these economies are large and, in many cases, higher than at the peak of the Asian crisis (Chart 2.11). In particular, corporate leverage has increased sharply. While the temporary rise in long-term interest rates during the summer caused a partial reversal of these capital flows, cumulative inflows since 2011 have still been large.”

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