A risk shock could potentially expose valuation concerns
Governor Mark Carney lays out the BoE’s long-term strategic plan today. While the external review itself has little bearing on monetary policy per se, investors should probably also look at sterling a bit more strategically and question, in the long term,
whether current strength is not only sustainable but healthy. A strong financial account seemingly oblivious to valuations may provide a false sense of security, as by all accounts the currency now has the most to lose if risk appetite begins to turn.
Read the full report: UBS