BOE's Bailey Says Global Economic Outlook Has Deteriorated Markedly

The global economic outlook has worsened, with tighter financial conditions due to central banks' monetary policies in response to inflation. The Russia-Ukraine conflict further impacts the global economy. Despite these challenges, the UK banking system remains resilient, with sufficient capital and liquidity to support lending, even in severe economic scenarios.

What has caused the global financial conditions to tighten significantly?

• Decrease in global inflation

• Central banks' monetary policies

• Increased global trade

• Rise in global employment rates

Which event is highlighted as a key factor affecting the global economic outlook?

• Brexit

• US-China trade war

• Russia's invasion of Ukraine

• COVID-19 pandemic

What is the state of the UK banking system despite the weaker economic outlook?

• It is collapsing

• It is declining rapidly

• It remains strong

• It is uncertain

What is expected to happen to capital ratios in the UK banking system?

• They will remain stable

• They will increase significantly

• They will decline slightly

• They will collapse

What does the UK banking system's resilience indicate?

• It is dependent on foreign investments

• It can withstand severe economic outcomes

• It is vulnerable to economic changes

• It cannot support lending