February 27, 2020 / 11:01 AM / a month ago

No need to reach for policy 'panic button', BoE's Cunliffe says

LONDON, Feb 27 (Reuters) - British policymakers have scope to loosen fiscal and monetary policy in the case of an economic downturn, but do not need to reach for the “panic button” yet, Bank of England Deputy Governor Jon Cunliffe said on Thursday.

Both the European Central Bank and the U.S. Federal Reserve are reviewing their policy structures in the context of low global interest rates, but Cunliffe said this was not a priority for Britain.

“I don’t think one should reach for the panic button,” he said at an event hosted by Barclays in London.

“If we hit a big global shock, then one would want to use one’s policy space - it is a risk management point - quickly, to avoid getting closer to a global liquidity trap. But that is if one hits that shock, rather than where we are at present.” (Reporting by David Milliken and Dhara Ranasinghe)

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