BOE sees China reforms challenging due to rapid debt build-up

The Bank of England sees increased risks stemming from the emerging markets as spreads on the sovereign and corporate bonds in those economies have risen while currencies have fallen, the FPC statement showed on Friday.

An increased level of market volatility stemming from the wider emerging market economies (EME) have intensified concerns at the Bank of England as China is "making transition to a slower-growth, more liberalized and consumption driven economy," the BoE's Financial Policy Committee (FPC) statement said on Friday.

The statement said the economic transition in China has been more challenging given the rapid build-up of both consumers and corporate debt, which the FPC said has more than doubled since 2008, accounting for some 195% of the total gross domestic product.

On the UK housing market, the FPC estimates the house prices are likely to continue rising in the near-term as transaction volumes has increased and spreads on mortgages have fallen.

Pair is supported above $1.5200 levels and trading at $1.5238 levels. It made intraday high at $1.5260 and low at $1.5205 levels.