Markets vulnerable to a sharp increase in interest rates – UK financial stability report

FXStreet (Mumbai) - The UK financial stability report and bank stress test results released today showed the markets are vulnerable to a sharp increase in the interest rates.

The report also said the asset prices are vulnerable risk-off resulting from emerging market risks and that could hurt the UK economy.

Meanwhile, BOE’s stress tests showed no capital inadequacies at 5 Of 7 banks. RBS and Standard Chartered only passed 2015 stress tests after taking steps to boost capital ratios.