BoE’s Miles cautions against use of policy rate for financial stability ends
Capital requirements may be a more efficient option
Central banks would be unwise to use monetary policy tools to meet financial stability goals, Bank of England (BoE) external monetary policy committee (MPC) member David Miles said on July 14.
Miles, whose term on the MPC ends in August, told an audience at the Resolution Foundation in London there was evidence to suggest capital requirements are more efficient for maintaining stability than interest rates. Miles argued excessive leverage was at the root of the 2008 crisis, which interest rates
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