LONDON, Oct 10 Reuters The Bank of England said on Tuesday that valuations for some financial assets may be too high, particularly for U.S. tech stocks and dollardenominated corporate bonds.

The overall risk environment continues to be challenging and nearterm growth prospects remain subdued, the BoE39;s Financial Policy Committee FPC said after a quarterly meeting.

Given the impact of higher interest rates, and uncertainties associated with inflation and growth, some risky asset valuations appear to be stretched, it added.

The FPC judged Britain39;s banks and wider financial system remained resilient, and it held banks39; countercyclical capital buffer CCyB a risk management tool unchanged at 2.

The FPC will continue to monitor developments closely and stands ready to vary the UK CCyB rate, in either direction, in line with the evolution of economic and financial conditions, it said.

Some FPC members argued for an increase in the rate, to boost banks39; resilience at a time when loan losses were low, and the case for cutting it was also considered, the BoE said.

After last month39;s meeting of its Monetary Policy Committee MPC, the BoE kept interest rates on hold for the first time since it began its tightening cycle in December 2021, leaving its main Bank Rate at 5.25.

Earlier on Tuesday, the International Monetary Fund downgraded its forecasts for Britain for next year, predicting growth of just 0.6 in 2024, the weakest of any major advanced economy.

The BoE…