Climate change, and society's responses to it, present financial risks which impact upon the Bank's objectives. These risks arise through two primary channels: the physical effects of climate change and the impact of changes associated with the transition to a lower-carbon economy.The Bank's...

We propose a framework for addressing the ‘black box' problem present in some Machine Learning (ML) applications. We implement our approach by using the Quantitative Input Influence (QII) method of Datta et al (2016) in a real‑world example: a ML model to predict mortgage defaults. This...

Capital inflows come in all shapes and sizes. This paper highlights that equity flows, especially foreign direct investment, are the most stable forms of capital inflows. In contrast, debt inflows from banks particularly in foreign currency are most prone to booms and busts. These flows also...