# Markets could face ‘sharp correction’, Bank of England warns
Published: 2021-10-08
Category: Business
Category URL: https://blockchaintribune.com/category/business/
Meta Title: BoE Warns of Sharp Correction in Asset Values Amid Increased Risk-Taking
Meta Description: BoE cautions on asset valuation correction, citing heightened risk-taking at investment banks amid reassessment of post-pandemic recovery prospects.
URL: https://blockchaintribune.com/markets-could-face-sharp-correction-bank-of-england-warns/

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LONDON (Reuters) – The historically high value of [financial](https://blockchaintribune.com/overcoming-challenges-in-implementing-blockchain-in-financial-services/) assets could correct sharply if investors reassess the prospects for recovery from COVID-19, with signs of increased risk-taking at investment banks, the Bank of England said on Friday.

The BoE’s Financial Policy Committee (FPC) said in a statement there was evidence that risk- [taking](https://blockchaintribune.com/frothy-stock-market-valuations-a-dash-for-cash-and-digital-money-all-on-bank-of-englands-risk-radar/) remained elevated in a number of financial markets relative to historic levels.

“Asset valuations could correct sharply if, for example, market participants re‐evaluate the prospects for growth, inflation or interest rates,” the statement said.

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

(Reporting by Huw Jones and William Schomberg; editing by Sarah Young)


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