BoE’s Greene defends new balance sheet strategy
Cross-border arbitrage of central bank facilities a “feature, not a bug”, says MPC member
The financial arbitrage opportunities that could arise from central banks shrinking their balance sheets will not weaken monetary policy transmission, a member of the Bank of England’s rate-setting committee has said.
In a lecture in London yesterday (June 24), Megan Greene, an external member of the BoE’s monetary policy committee, discussed the implications of central banks around the world shifting away from an “abundant reserves” framework.
Market interest rates in the past 15 years have
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