world-economy

UK Central Bank Flags Economic Risk From Tech Stock Volatility

Bank of England Governor Andrew Bailey warned Tuesday that a sharp correction in technology stocks could reverberate through the broader UK economy. Policymakers may need to adjust interest rates in response, Bailey cautioned. His comments highlight growing concern among global central banks about the concentration of gains in a narrow group of equities and the systemic risks posed by a sudden reversal. The warning comes as inflation pressures have begun to ease in major economies, reducing urgency for rate increases. Meanwhile, market strategists are recommending investors diversify away from dominant market segments toward underperforming sectors that may offer stronger returns over the coming months. The remarks underscore mounting anxiety among monetary authorities about financial stability even as they navigate conflicting signals on inflation and growth.