A senior Bank of England official warned that global markets could fall further given that current share prices do not reflect economic risks.
Sara Briden, the Bank’s deputy governor for financial stability, said: “There are a lot of risks and yet asset prices are at record levels. We expect there will be an adjustment at some point.”
Markets were shaken after the war in the Middle East, falling by more than eight percent within a month.
The losses caused the FTSE 100 to fall below the 10,000-point mark in several short trading sessions, according to “CityAM”.
