Investor exuberance as interest rates fall and growth recovers is one of the biggest risks to financial stability this year, according to a Bank of England policymaker. Markets may ramp up risk levels dangerously as economic conditions improve and volatility reduces, Jonathan Hall, an external member of the BOE’s Financial Policy Committee, said Wednesday in testimony to the UK Parliament. “If conditions seem calm, if volatility is low, then you could get a risk of exuberance — people taking on more risk because they think the market is more benign,” he said when asked about his biggest concern. “We have seen that, ... (full story)