The Bank of England expects stock markets around the world to fall as share prices do not reflect the many risks facing the global economy, its deputy governor has told the BBC.

Sarah Breeden said: “There’s a lot of risk out there and yet asset prices are at all-time highs. We expect there will be an adjustment at some point.”

It is unusual for a senior figure at the Bank to be so forthright on market movements.

Breeden, who is also the Bank’s head of financial stability, declined to say when she expected markets to fall or by how much, but pointed to a number of factors that markets seemed complacent about.

“The thing that really keeps me awake at night is the likelihood of a number of risks crystallising at the same time – a major…