Bank of England tells lenders to brace for economic storm

British banks were well-placed to weather even a severe economic downturn

The Bank of England warned on Tuesday that the economic outlook for Britain and the world had darkened and told banks to ramp up capital buffers to ensure they can weather the storm, Qazet.az reports.

"The economic outlook for the UK and globally has deteriorated materially," the BoE said as it published its latest Financial Stability Report, adding that developments around the war in Ukraine would be a key factor.

International forecasters like the IMF and OECD say Britain is more susceptible to recession and persistently high inflation than other Western countries, all of whom are grappling with global energy and commodity market shocks.

British banks were well-placed to weather even a severe economic downturn, the BoE said, although it noted their capital ratios - while still strong - were expected to decline slightly in the coming quarters.