Commodity volatility poses a risk to market resilience, BoE's Bailey says

LONDON (March 28) - Huge swings in commodity prices mean resilience in financial markets cannot be taken for granted and central bodies and authorities are watching the situation very closely, Bank of England Governor Andrew Bailey said on Monday.

"Liquidity conditions have deteriorated in many commodity markets, margining costs have risen, which is of course a reflection of much higher volatility and risks in these markets," he told an event at the Brussels' Bruegel think tank.

"We can't take resilience in particularly in that part of the market for granted. There's a strong need to work together on this," he said, adding that there was very good evidence of the Financial Stability Board doing that.

REUTERS