BOE Unveils Doomsday Scenario for Private Markets Stress Test (opens original article in a new tab)

The Bank of England is conducting a stress test on private markets using a severe economic scenario involving high interest rates, stock market crashes, and AI-related risks to assess potential systemic shocks.

• Bank of England conducts stress test on private markets with a doomsday scenario including 7% interest rates and 35% drop in UK share prices
• 46 firms including major asset managers participate in the test to assess risks in private markets
• Scenario includes AI-related disruptions and potential impacts on productivity and economic recovery