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BOE's Hauser: We need to ensure banks’ liquidity insurance remains suitable
BOE'S HAUSER: WE NEED TO ENSURE BANKS’ LIQUIDITY INSURANCE REMAINS SUITABLE AS TECHNOLOGICAL CHANGE INCREASES THE RISK OF LARGER AND FASTER DEPOSIT RUN.
— Breaking Market News (@financialjuice) November 3, 2023
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BOE'S HAUSER: CENTRAL BANK RESERVES ARE TO BE HIGHER THAN PRE-2008.
— Breaking Market News (@financialjuice) November 3, 2023
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Hauser: ‘Less is more’ or ‘Less is a bore’? Re-calibrating the role of central bank reserves
Central banks today face many challenges – but three of the biggest are: • First, how to judge where central bank balance sheets should settle in the medium term as monetary policy makers return inflation – which remains far too high – to target, through a combination of higher interest rates and unwinding Quantitative Easing (QE) and other ‘unconventional’ policy interventions; • Second, on the micro-prudential side, how to ensure that banks’ liquidity insurance remains appropriate as technological change increases the risk of larger and faster deposit runs, of the kind seen this Spring in the US; ... (full story)