Bank of England’s Bailey sees risks from commodity trading frenzy
Bank of England Governor Andrew Bailey points to the commodity markets as the area of greatest fragility in terms of stresses on the financial system
LONDON, United Kingdom – Bank of England (BoE) Governor Andrew Bailey said swings in commodity markets after Russia’s invasion of Ukraine posed a risk to financial stability and the challenges facing the world economy are bigger than after the global financial crisis.
Prices in gas, oil, metals, and agricultural markets have soared and have become so volatile that companies have had to cut trading volumes due to strained liquidity.
Bailey pointed to the commodity markets as the area of greatest fragility in terms of stresses on the financial system.
“We can’t take resilience, in particular in that part of the market, for granted,” Bailey told an event held by the Bruegel think tank in Brussels on Monday, March 28.
The hit to real incomes…
