UK share values ‘most stretched’ since 2008, Bank warns


The dotcom booms refers to a period in the late 1990s, during which the values of early internet companies surged amid a wave of optimism for what was then a new technology, before the bubble burst in early 2000 – with many share prices collapsed.

This led to some companies going bust, resulting in job losses.

A drop in share prices can also hit the value of people’s savings including their pension funds.

Fears over an AI-related stock market correction come as Chancellor Rachel Reeves used her Budget to encourage savers to pile cash into stocks and shares by reducing the amounts which can be saved in cash Isas.

In its latest report, the Bank of England said the risks to financial stability have risen during 2025, citing geopolitical tensions, global trade wars and rising borrowing costs for governments.

It said growing tension between countries has specifically raised the prospect of cyberattacks and other disruptions.

Elsewhere in the financial stability report, the Bank of England warned homeowners coming off fixed rate mortgages in the next two years face a £64 increase in their monthly repayments.


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