BoE’s Broadbent examines rising cost of capital
Ben Broadbent, an external member of the Bank of England's Monetary Policy Committee, spoke on May 28 about the causes of rising capital costs.
Speaking at Bloomberg in London, Broadbent highlighted increases in the risk premium since the financial crisis. This is "exactly what you'd expect if investors' fears about downside risks in particular began to intensify," he said. "What I have in mind here is the possibility of extreme outcomes in the euro area."
Such a "rare disaster" would impact
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