BoE: Risk-taking remains elevated in a number of markets relative to historic levels

In a recently published report, the Bank of England (BoE) said that the Financial Policy Committee judges that there is evidence risk-taking remains elevated in a number of markets relative to historic levels, per Reuters.

Additional takeaways

"Asset valuations could correct sharply."

"There are signs of continued loosening in underwriting standards and increased risk-taking in some investment banking businesses."

"Direct risks to the stability of the UK financial system from crypto assets are currently limited."

"Financial institutions should take a cautious and prudent approach to any adoption of crypto assets."

Market reaction

These comments don't seem to be having a significant impact on the British pound's performance against its rivals. As of writing, the GBP/USD pair was virtually unchanged on the day at 1.3615.