BoE’s Cunliffe: central banks must consider market liquidity backstop

There is an open question that will need answering over how central banks ought to provide liquidity backstops to financial markets in future, Bank of England deputy governor Jon Cunliffe said on June 9.

The banking system had proven resilient in the first phase of the Covid-19 market stresses, Cunliffe said during a webinar. Post-2008 reforms to derivatives markets also helped cut counterparty risk. But it still took unprecedented central bank interventions to stabilise markets in the wake of