In its latest Financial Stability Report, the Bank of England (BOE) said that financial pressures on UK companies, especially for smaller firms, are expected to rise in 2023.

Additional takeaways as summarized by Reuters

"Risk of global debt vulnerabilities crystallising has increased."

"Will monitor UK credit conditions for signs of unwarranted tightening."

"Financial pressure on households will rise in 2023, more resilient than before the global financial crisis."

"Low risk at present of large or rapid fall in foreign investor demand for UK assets."

"Widespread signs of financial difficulty among UK households are yet to emerge."

"Will maintain UK banks' counter-cyclical capital buffer requirement at 2%."

"Financial institutions and investors should take an especially cautious and prudent approach to crypto assets due to lack of regulation."

"Enhanced regulation and law enforcement needed for crypto markets and activities."

Market reaction

GBP/USD largely ignored this publication and was last seen trading at 1.2287, where it was up 0.15% on a daily basis.