empty
 
 

2020.01.0805:38:00UTC+00BoE's Carney Says Central Banks Running Out Of Tools To Fight Downturn

Major central banks were running out of tools to fight an economic downturn, Bank of England Governor Mark Carney said in an interview with the Financial Times.

"It's generally true that there's much less ammunition for all the major central banks than they previously had and I'm of the opinion that this situation will persist for some time," the outgoing governor said.

"If there were to be a deeper downturn, [that requires] more stimulus than a conventional recession, then it's not clear that monetary policy would have sufficient space" he added.

Carney cautioned that the global economy is heading towards a "liquidity trap" and policy loosening would fail to encourage additional spending.

The governor suggested that the government needs to consider fiscal measures such as tax cuts or public spending to tackle a downturn. He remained optimistic about the economy after the Brexit.

  • Grand Choice
    Contest by
    InstaForex
    InstaForex always strives to help you
    fulfill your biggest dreams.
    JOIN CONTEST
  • Chancy Deposit
    Deposit your account with $3,000 and get $1000 more!
    In April we raffle $1000 within the Chancy Deposit campaign!
    Get a chance to win by depositing $3,000 to a trading account. Having fulfilled this condition, you become a campaign participant.
    JOIN CONTEST
  • Trade Wise, Win Device
    Top up your account with at least $500, sign up for the contest, and get a chance to win mobile devices.
    JOIN CONTEST
  • 100% Bonus
    Your unique opportunity to get a 100% bonus on your deposit
    GET BONUS
  • 55% Bonus
    Apply for a 55% bonus on your every deposit
    GET BONUS
  • 30% Bonus
    Receive a 30% bonus every time you top up your account
    GET BONUS


Can't speak right now?
Ask your question in the chat.
Widget callback