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BoE warns of rising sovereign debt impact on UK financial stability
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In its Financial Stability report published today (29 November), the central bank noted that public debt-to-GDP ratios across major economies is forecast to continue rising due to expected primary budget deficits and higher levels of growth-adjusted interest rates. Other shorter- and longer-term trends include defence spending pressures, demographics and climate change, which could further strain government finances. According to the BoE, high public debt levels in major economies «could interact with other vulnerabilities» and pose consequences for UK financial stability. OBR warn...
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