Plenty monetary policy measures in reserve
Central banks have plenty of monetary policy ammunition left, says Stephen Cecchetti. Even when rates hit zero central banks can make use of "contingency plans" involving unorthodox monetary operations.
Source: the Financial Times
Overnight interest rates have fallen to their lowest levels in decades. With the US Federal Reserve's federal funds rate at 1.25%, the European Central Bank's main refinancing rate at 2.5% and the Bank of England's repo rate at 3.75%, we are approaching a very clear
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