United Kingdom GBP

United Kingdom BoE Financial Stability Report

Impact:
Low
Source: Bank of England

Latest Release:

Date:
Actual:
 
Forecast:
Previous/Revision:  
Period:
What Does It Measure?
The Bank of England (BoE) Financial Stability Report measures the resilience of the UK financial system to potential economic shocks and assesses the overall stability of financial markets. It primarily focuses on key areas such as financial health, systemic risks, and the ability of financial institutions to withstand adverse conditions.
Frequency
The BoE Financial Stability Report is released semi-annually, typically in June and December, and provides final figures based on comprehensive assessments conducted throughout the preceding months.
Why Do Traders Care?
Traders closely monitor the BoE Financial Stability Report as it provides important insights into the stability of the UK financial system, which can impact monetary policy and economic confidence. Positive assessments may lead to bullish market sentiment for the British pound (GBP) and equities, while negative evaluations could instigate bearish reactions in financial markets.
What Is It Derived From?
The report is derived from the BoE's assessments, utilizing a combination of quantitative and qualitative data collected from various financial institutions, market analyses, and stress-testing methodologies. The survey includes information from banks, insurance companies, and other financial entities to evaluate systemic risk levels and vulnerabilities.
Description
The Financial Stability Report consists of analyses on various factors affecting the UK’s financial system, including credit risks, liquidity conditions, and potential external threats such as international economic trends. It provides analysis on both current conditions and forecasts, helping stakeholders understand evolving risks and vulnerabilities that could affect financial stability.
Additional Notes
The Financial Stability Report is regarded as a coincident economic measure, providing insights into current financial conditions rather than predicting future trends. It frequently correlates with other economic indicators, such as GDP growth and inflation rates, reflecting broader economic themes both within the UK and in global financial markets.
Bullish or Bearish for Currency and Stocks
Higher than expected: Bullish for GBP, Bullish for Stocks. Lower than expected: Bearish for GBP, Bearish for Stocks.

Legend

High Potential Impact
This event has a strong potential to move markets significantly. If the 'Actual' value differs enough from the forecast or if the 'Previous' value is significantly revised, it signals new information that markets may rapidly adjust to.

Medium Potential Impact
This event may cause moderate market movement, especially if the 'Actual' deviates from the forecast or there's a notable revision to the 'Previous' value.

Low Potential Impact
This event is unlikely to affect market pricing unless there's an unexpected surprise or a major revision to prior data.

Surprise - Currency May Strengthen
Actual deviated from Forecast on a medium or high impact event and historically could strengthen the currency.

Surprise - Currency May Weaken
Actual deviated from Forcast on a medium or high impact event and historically could weaken the currency.

Big Surprise - Currency More Likely To Strengthen
'Actual' deviated from 'Forecast' more than 75% of historical deviations on a medium or high impact event and may likely strengthen the currency.

Big Surprise - Currency More Likely To Weaken
'Actual' deviated from 'Forecast' more than 75% of historical deviations on a medium or high impact event and may likely weaken the currency

Green Number Better than forecast for the currency (or previous revise better)
Red Number Worse than forecast for the currency (or previous revise better)
Hawkish Supports higher interest rates to fight inflation, strengthening the currency but weighing on stocks.
Dovish Favors lower rates to boost growth, weakening the currency but lifting stocks.
Date Time Actual Forecast Previous Surprise