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The UK's Financial Policy Committee (FPC) convened in December 2025 to assess risks to financial stability and determine policy measures to strengthen the resilience of the UK financial system. The meeting focused on identifying emerging threats such as inflationary pressures, credit market vulnerabilities, and global economic uncertainties. The FPC's decisions will influence monetary policy frameworks and investor confidence in European markets. The outcome of this meeting is critical for shaping regulatory responses and could impact forex markets, particularly the GBP/USD pair, as well as broader European financial stability.