Sarah Breeden: Weathering the storm - stability in a changing climate

Speech by Ms Sarah Breeden, Deputy Governor for Financial Stability of the Bank of England, at the Chapman-Barrigan lecture, London, 10 July 2025.

The views expressed in this speech are those of the speaker and not the view of the BIS.

Introduction

I wanted to start by saying what an honour it is to speak this evening at the annual Chapman Barrigan lecture. It is always special to come together to celebrate trailblazing women. And this series is a wonderful tribute to and legacy for Honor Chapman and Trish Barrigan, two outstanding, inspirational, pioneering leaders in property.

The lectures provide space for reflection and discussion on the forces shaping our economies and financial systems and I'm delighted to contribute to that tradition tonight. It's a time of profound change – technological, geopolitical, environmental. I plan tonight to explore the theme of our changing climate and the role of the Bank of England in delivering stability through that.

I am also greatly honoured to speak to such a distinguished crowd from the commercial property sector. The commercial property sector is undoubtedly a hugely important sector of the United Kingdom's economy. It provides the physical space for businesses to operate, innovate and generate jobs. It attracts significant amounts of foreign capital as it does so. And it directly employs over 1 million people.

But it is also a sector that has over the years seen significant cycles of boom and bust and contributed to many financial stability challenges, both in the United Kingdom and overseas (including in the US even very recently). Understanding the challenges facing the sector is a critical part of our financial stability mission, and we are hugely grateful to the industry for the open and constructive engagement that you all provide.