Central banks lack ‘firepower’ to combat financial crises, says report

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Central banks would have “limited firepower” were another financial crisis to hit, the latest Global Risks Report published by the World Economic Forum says. 

Published today (January 17), the report acknowledges there is a “range of newer fragilities that have emerged or strengthened materially since the crisis”, and that many central banks are not currently able to use interest rates to respond to such an event.

“Central banks were crucial to restoring economic confidence among households

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