BoE's Cunliffe says Russia crisis will add to risks from rates shift

LONDON - Bank of England Deputy Governor Jon Cunliffe said sanctions against Russia over its invasion of Ukraine did not threaten the stability of the financial system but the crisis would add to the risks already raised by a shift to higher interest rates.

"The heightened perception of geopolitical risks, and the potential impacts on growth and inflation, can only increase risks around the adjustment away from riskier assets that is already underway," Cunliffe said in a speech at Oxford University.

"And this comes during a period of relatively low market liquidity."