The Bank of England on Wednesday warned that the risk of a "sharp market correction" has increased, noting that valuations appear stretched, particularly for artificial intelligence-focused tech firms.

The central bank becomes the latest in a long list of banks and investors to weigh in on whether an AI bubble is forming as markets tick into the fourth quarter.

Heightened geopolitical tensions, fragmented trade and financial markets and pressures on sovereign debt markets play into the risk, the Bank of England said in a record of its latest meeting minutes.

"A crystallisation of such global risks could have a material impact on the UK as an open economy and global financial centre," it said.

Equity market valuations stood at near all-time highs, the Bank of England said, thanks in

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