Market volatility not a return to 2007, Bank of England deputy governor says

This week’s stock market volatility is not a foreshadowing of a crash like that seen in 2007, a deputy governor of the UK’s central bank has said.

The Bank of England’s Ben Broadbent said on Friday that markets had risen off the back of economic growth without “pricing in” the inflationary pressures and interest hikes that would follow. Rather than a repeat of the 2007 crash, these corrections had placed the US market “back where we were a couple of months ago”.

Mr Broadbent said: “If you look at what happened last year, particularly in the US but also in other equity markets, there was extremely strong growth, big rises in prices, as people gradually realised how the strong the growth in the global economy was. It went a long way.