Bailey: Monetary policy will not be knocked off course by financial stability concerns

Following SVB collapse

The UK is not facing a “systemic banking crisis", Bank of England governor Andrew Bailey has said, arguing monetary policy should not be pushed off course due to turmoil in the banking system.

In a speech today (12 April) at the Institute of International Finance, Bailey said "the post-crisis reforms to bank regulation have worked", stating UK banks are well capitalised and liquid. He contended that while monetary policy should consider financial conditions, what the central bank should not do "is in any sense aim off our preferred setting of monetary policy because of financial instability". IMF: Weak growth will drag down interest rates Bailey noted that although quantitative tightening is being implemented gradually, central bank balance sheets will likely remain ...