Central banks might struggle to fight deep downturn: Carney

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Central banks might struggle to fight deep downturn: Carney
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Bank of England Governor Mark Carney said central banks might not be able to fig...

FILE PHOTO: Mark Carney, Governor of the Bank of England listens at a Bank of England Financial Stability Report news conference in London, Britain December 16, 2019. Kirsty Wigglesworth/Pool via REUTERS

“It’s generally true that there’s much less ammunition for all the major central banks than they previously had and I’m of the opinion that this situation will persist for some time,” Carney told the newspaper in an interview published on Tuesday. The BoE has raised interest rates to just 0.75%, a fraction above their emergency financial crisis levels. The U.S. Federal Reserve, which unlike most other central banks raised borrowing costs in recent years, cut them three times in 2019.

The FT quoted Carney as saying the BoE was looking into the issue of its reduced monetary policy options.

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