Bank of England warns rising global risks threaten UK financial stability

The Bank of England has raised concerns about increased risks to the UK's financial stability due to new U.S. tariffs announced by President Trump. The Financial Policy Committee (FPC) highlights that the unpredictability in global trade could significantly impact the UK's economy, which is highly interconnected with global markets. Following the tariff announcements, UK bond yields have surged, indicating market volatility and concerns about debt sustainability. Despite these risks, the FPC remains confident in the UK banking sector's ability to support households and businesses through economic challenges. The committee also warned that reduced global cooperation and high public debt levels could exacerbate financial market instability. Overall, the FPC's report underscores the delicate balance of the UK's financial system amid changing global trade dynamics.