BoE’s Bailey sees COVID, UK-EU trade future as downside risks

LONDON (Reuters) – Bank of England Governor Andrew Bailey said on Friday that the COVID-19 pandemic and the coming shift in trading arrangements between Britain and the European Union were downside risks to financial system.

“Although there have been encouraging developments on vaccines, the (Financial Policy Committee), consistent with its remit, is focused on the range of downside risks that remain,” Bailey said in remarks following the publication of the BoE’s Financial Stability Report.

“These include risks from the evolution of the pandemic, as well as from the transition to new trading arrangements with the European Union.”