Need to ensure banks’ liquidity insurance remains appropriate – Crypto News – Crypto News
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Need to ensure banks’ liquidity insurance remains appropriate – Crypto News

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Andrew Hauser,  Executive Director – Markets, at Bank of England (BoE), said on Friday, they “need to ensure banks’ liquidity insurance remains appropriate as technological change increases the risk of larger and faster deposit run.”

Additional quotes

After QT unwind, the BoE will need to supply a “materially higher” standing stock of reserves than before 2008 crisis.

Will continue to deepen alternative liquidity sources for banks.

Will look to calibrate boe liquidity toolkit to return market discipline to banks’ liquidity management.

Real limits to extent to which BoE can use price incentives to manage banks’ reserves demand.

Non-price levers have complex issues, need to avoid risks to monetary control or financial stability.

Market reaction

At the time of writing, GBP/USD is maintaining its range just below the 1.2200 level, awaiting a fresh trading impetus from the US Nonfarm Payrolls data release.

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