This global savings glut outside the United States has contributed to low long-term interest rates and to what some observers have called a "wall of liquidity" that has led to strong investment flows into many assets, and higher prices for these assets.
As long as market participants have reason to believe that policy-makers will take appropriate actions, there is no reason to expect that these imbalances won't be unwound in a gradual and orderly way. Indeed, this is what the Bank's base-case assumes. So far, financial markets have handled these imbalances smoothly.