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BOE 2015 Stress Tests To Probe Risks Stemming From Deflation
The Bank of England's 2015 stress tests will explore the vulnerabilities of UK banks to risks arising outside these shores and will look at the impact of a deflationary environment. The updated stress tests, published Monday, highlight the evolution of economic risks. Deflation has emerged at the hot topic this year and with the UK economy continuing to grow around trend, the tests highlight the risks to the domestic economy from overseas. Headline UK inflation fell to zero in February and is expected to turn negative in March, and deflation is already present in the Eurozone and elsewhere. "The 2015 scenario ... (full story)