Finance
Stock Markets Are Too High and Set to Fall, BOE Deputy Governor Tells BBC
Published by Global Banking & Finance Review®
Posted on April 24, 2026
2 min readLast updated: April 24, 2026
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Bank of England Deputy Governor Sarah Breeden warned that global stock markets are priced at record highs despite significant risks—particularly from the rapidly expanding private credit market—and signaled that an adjustment may be inevitable.
BOE Deputy Governor: Stock Markets Too High, Major Risks Loom Ahead
Bank of England's Warning on Global Stock Markets
April 24 (Reuters) - The Bank of England expects stock markets around the world to fall because current share prices do not fully reflect the many risks facing the global economy, Deputy Governor Sarah Breeden said in an interview with the BBC on Friday.
Deputy Governor's Concerns Over Asset Prices
"There's a lot of risk out there and yet asset prices are at all-time highs," Breeden told the BBC, warning that a market adjustment is likely at some stage.
Uncertainty Over Timing and Severity
Although she declined to predict when markets might fall or how severe any downturn could be, Breeden said her job was to ensure the financial system is ready if such a correction occurs, according to the BBC.
Risks Highlighted by the Bank of England
Her comments reflect concerns the Bank raised earlier this month, when it said U.S.-Israeli war on Iran had delivered a major shock to the global economy, with weaker growth, higher inflation and rising borrowing costs increasing the risk of simultaneous stress in government debt markets, private credit and major U.S. technology stocks.
Multiple Risks Facing the Financial System
"The thing that really keeps me awake at night is the likelihood of a number of risks crystallising at the same time – a major macroeconomic shock, confidence in private credit goes, AI and other risky valuations readjust - what happens in that environment and are we prepared for it?" she said.
Private Credit Crunch: A Key Worry
Breeden told the BBC that she was worried about the private credit crunch, rather than a banking-driven credit crunch.
Growth and Complexity of Private Credit
Unprecedented Scale and Interconnections
"Private credit has gone from nothing to two-and-a-half trillion dollars in the last 15 to 20 years. It hasn't been tested at this scale with the degree of complexity and interconnections it has with the rest of the financial system so far," she said.
(Reporting by Shivani Tanna in Bengaluru; Editing by Tom Hogue and Muralikumar Anantharaman)
Key Takeaways
- •Breeden cautioned that asset prices are near all‑time highs yet fail to reflect mounting macroeconomic, inflationary and geopolitical risks—from war shocks to AI overvaluation pressures. (aol.com)
- •She emphasized that her priority is financial system resilience, not timing the correction: markets may adjust sharply, and the Bank must prepare for potential fallout. (aol.com)
- •A central concern is the opaque $2‑plus trillion private credit sector, which has ballooned in size but hasn't been stress‑tested; this shadow banking segment risks systemic contagion under strain. (aol.com)
References
Frequently Asked Questions about Stock markets are too high and set to fall, BOE deputy governor tells BBC
1Why does the Bank of England believe stock markets are too high?
The BOE thinks current stock prices do not fully reflect major risks facing the global economy.
2What risks are impacting global stock markets according to the BOE?
Key risks include macroeconomic shocks, weaker growth, high inflation, rising borrowing costs, and instability in private credit.
3What did BOE Deputy Governor Sarah Breeden say about private credit?
She expressed concerns about the rapid growth and complexity of private credit, which has not been tested at its current scale in adverse conditions.
4Did the BOE provide a timeline for a potential market correction?
The BOE did not specify when a correction might happen or how severe it could be, only emphasizing the likelihood of an adjustment.
5What is the BOE doing to address these market risks?
The BOE is working to ensure the financial system is prepared for potential market shocks or corrections.
