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MNI BRIEF: Not Facing Systemic Banking Crisis - BOE Bailey

(MNI) London
(MNI) London

Policymakers are not facing a systemic banking crisis and they should not "aim-off" on monetary policy in response to financial stability risks, Bank of England Governor Andrew Bailey said at an IIF event in Washington on Wednesday.

Bailey said that the BOE's Monetary Policy Committee would only factor in financial stresses in so far as they impact the real economy but that they would not let the spectre of a financial crisis influence policy setting.

He also outlined the uncertainty over how far the BOE can go via quantitative tightening in shrinking its balance sheet before reducing central bank reserves below the level desired by market participants.

On Thursday, BOE Chief economist Huw Pill speaks at an MNI Connect event, hopefully expanding on some of the topics Bailey mentioned. Readers can register for the Pill event here.

MNI London Bureau | +44 203-586-2223 | david.robinson@marketnews.com
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MNI London Bureau | +44 203-586-2223 | david.robinson@marketnews.com
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