<ul data-eligibleForWebStory="false"><li>The Bank of England warns of ongoing financial risks despite easing tariff tensions in global markets.</li><li>The central bank's mid-year assessment report highlighted concerns over geopolitical tensions, trade fragmentation, and sovereign debt pressures.</li><li>Although risk sentiment improved when tariffs were paused, risky asset valuations and historical correlations remain precarious, with the U.S. dollar weakening further post-tariff announcements.</li><li>The Bank underscores the need for market participants to manage risks effectively due to the interconnectedness of global financial markets and potential shifts in historical correlations, urging vigilance in monitoring currency hedging and funding market pressures.</li></ul>

Bank of England Warns of Financial Risks Despite Tariff Pauses

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