Forbes asks if BoE’s ‘Midas touch’ has been tarnished
Very low interest rates carry risks, but they are manageable, MPC member says
The Bank of England's (BoE) "Midas touch" – creating money out of nothing using low interest rates – may turn out to be more curse than blessing, monetary policy committee (MPC) member Kristin Forbes said today.
In a speech to the Institute of Economic Affairs in London, Forbes evoked King Midas, whose power to turn items to gold by touching them turned out to be impractical when it came to eating dinner. She drew a parallel with six risks from low interest rates, including inflation, asset
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