IMF's Portugal on liquidity provision

Central banks should continue to provide liquidity as needed to assure the smooth functioning of markets, said Murilo Portugal, a deputy managing director of the International Monetary Fund (IMF).

However, central banks should at the same time take care to avoid taking on credit risk themselves or sending confusing messages about the broader stance of monetary policy, he added.

Central banks needed to review the operational characteristics of their liquidity facilities to make sure that they are

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