Financial Policy Committee Record – September 2026

Imported from official source

Statement

Finance Classified by Officially

The risk outlook has worsened since July, and interconnected risks are more likely to crystallise at the same time.

Sovereign yields have risen, tightening financial conditions globally. The financial system has been resilient so far.

Rapid advances in AI capabilities have increased cyber and operational resilience risks.

UK households and businesses are resilient, and the banking system is strong enough to support them in a stress.

Record of the Financial Policy Committee meeting on 25 September 2026

  • The likelihood that interconnected vulnerabilities in the financial system crystallise has risen since the Financial Policy Committee’s (FPC) previous meeting. The re-escalation of the conflict in the Middle East has renewed uncertainty around growth and the path of interest rates in a number of advanced economies, re-intensifying the risk that vulnerabilities in sovereign debt markets, risky asset valuations, and risky credit markets crystallise at the same time. The rapid increase in artificial intelligence (AI)-related debt issuance broadens the exposure of capital markets to developments in AI. At the same time, recent incidents in frontier AI have drawn further focus to the pace of AI development and associated vulnerabilities, including cyber and operational risks. The Committee underscores the importance of timely and careful management of these intensifying, interconnected risks.
  • Specifically, the re-escalation of the conflict and the associated rises in oil, gas and refined product prices are leading to a more protracted negative supply shock to the global economy. This has contributed to sustained increases in sovereign bond yields across a number of advanced economies, to levels not seen since 2008.
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    September 30, 2026 10:00
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