The FPC, which is headed by Governor Mark Carney, said the UK's financial sector has "demonstrated resilience" following the Brexit vote as "core financial markets functioned effectively despite initial sharp price moves". Since then "a number of economic indicators have picked up from their post-referendum low points [but] the UK faces a challenging period of uncertainty and adjustment". The future pattern of economic growth depends in part on the result of negotiations with the rest of the EU. "The risk remains of a fall in overseas investors' appetite to invest in the UK. Any disorderly adjustment in capital flows would be associated with tighter funding conditions for the UK real economy," the FPC said. The Bank is also worried that an economic slowdown could dent employment and pay growth, which is a danger for those households that are particularly highly indebted. Risks in the global economy are also a worry, particularly in emerging markets that are building up debts. "Credit growth in China continues to materially outpace GDP, and the level and growth of credit relative to GDP in China are very high by international standards," the FPC said. The Bank of England is currently testing British banks' ability to cope with any economic fallout from a Chinese slump.
The Bank of England has announced that Brexit will not result in restricted access to the European Union ’s ( EU ) single market , provided that regulations are regarded as equivalent to those set by the EU . Although good news for the 5 , 000 UK firms currently taking advantage of EU passporting schemes , experts have nevertheless concluded that future economic growth is still dependent on the terms set by Brexit discussions .