BoE's Carney: Bank buffer rate could be lowered

Thursday, 17. October 2019 01:11

The chief of the central bank of the United Kindgom joined calls from the European Central Bank to fiscal policy makers to support the economy at the time of uncertainty. Speaking in Cambridge, Massachusetts, Mark Carney indicated that in the wake of Brexit the countercyclical buffer could be lowered as a stimulus measure for banks, in order for them to prop up lending.

Turning to the effect of negative interest rates, he claimed commercial financial institutions haven't been impacted in Europe. The outgoing governor of the Bank of England brushed off the possibility to introduce nominal lowering costs under zero. Carney also warned "a global liquidity trap" is near.

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