Global stock markets are too high and set to fall, says Bank of England deputy

Sarah Breeden, deputy governor of the Bank of England and head of financial stability, warned the BBC that global stock markets are overvalued and expect an adjustment downward, citing complacency about risks including macroeconomic shocks, private credit vulnerabilities, and potentially inflated AI valuations. The article is bylined by Simon Jack, BBC Business Editor, and includes direct quotes from Breeden alongside expert commentary from investment analyst Russ Mould; it provides specific context on shadow banking growth ($2.5 trillion), recent losses in private credit funds, and comparisons to historical bubbles like the dotcom era. Independent corroboration from CNBC and This is Money confirms the substance of Breeden's warning and its unusual nature for a Bank of England official; The Guardian's concurrent reporting on oil price spikes adds context to macroeconomic pressures Breeden referenced. Watch for market volatility in coming weeks and the Bank of England's next financial stability assessment, as well as any regulatory action on the shadow banking sector Breeden highlighted as untested at current scale.