FPC record of September meeting 2026

The Bank of England (BoE) has published the record of the Financial Policy Committee's (FPC) meeting held on 25 September. The headline judgements and policy actions from the meeting include:

• The likelihood of interconnected vulnerabilities in the financial system crystallising has risen since the FPC's previous meeting. The re-escalation of the conflict in the Middle East has renewed uncertainty around growth and the path of interest rates in a number of advanced economies, re-intensifying the risk that vulnerabilities in sovereign debt markets, risky asset valuations, and risky credit markets crystallise at the same time.
• The rapid increase in AI-related debt issuance broadens the exposure of capital markets to developments in AI. In addition, recent frontier AI incidents have heightened concerns about the pace of AI development and related cyber and operational risks. The FPC stresses the importance of managing these increasingly interconnected risks in a timely and prudent manner.
• Risky credit markets, including parts of private credit, remain vulnerable to a tightening in financing conditions. It notes the importance of the private markets system-wide exploratory scenario in filling data gaps.
• Households and corporates remain resilient, and the UK banking system remains appropriately capitalised with high levels of liquidity.
• The FPC has decided to maintain the UK countercyclical capital buffer rate at its neutral setting of 2%.
• The Committee has agreed to proceed with the proposed leverage ratio reforms as set out in the July financial stability in focus report, which the BoE expects to consult on in early 2027. This increases the importance of continuing to develop and implement measures to improve the resilience of the gilt repo market. If, in future, the Committee were to judge that risks were heightened and that additional resilience was warranted, it would consider increasing the general leverage ratio buffer above 25 basis points.
• The most material climate-related channels to UK financial stability are the potential long-run impacts of climate change on sovereign debt pressures globally. The analysis behind this will be published in a forthcoming BoE Insights article.

Separately, the BoE published its systemic risk survey results for H2 2026 to quantify participants' views of risks to, and their confidence in, the stability of the UK financial system.

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