BOE to Stress Test Private Markets With 7% Rates, 35% UK Stock Drop Scenario

The Bank of England said it will stress test private markets against a scenario featuring 7% interest rates, a 35% collapse in UK share prices and a 400 basis-point widening in leveraged-loan spreads. According to Bloomberg, the scenario also includes a range of disruptions tied to artificial intelligence, and the central bank announced the test on Friday.