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Regulation Macro

BoE’s Bailey: No Room to Assume Supply Shocks Fade on Their Own

Bank of England Governor Andrew Bailey said there is no longer room to assume that supply shocks will subside on their own, warning that fading memories of the financial crisis are increasing pressure to loosen regulation. Bailey’s remarks signal heightened concern over persistent supply-side disruptions and the risk that lighter oversight could build as crisis experience fades.

Original source

AI take

Bailey's framing links two risks that are usually discussed separately: persistent supply shocks and the regulatory complacency that builds as crisis memory fades. For crypto and RWA markets, the regulatory point carries the most weight, since calls to loosen oversight after a period of stress tend to shape how tokenized products and market infrastructure are supervised. The open question is whether Bailey's warning influences the direction of that deregulatory pressure or remains a cautionary note.

Generated by AI for reference only.

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