• Comments from Bank of England Deputy Governor Minouche Shafik at the IMF conference in Lima this weekend:

  • "The risk inherent in this build up of leverage (in emerging markets) has motivated calls for a normalisation of advanced economy monetary policy sooner rather than later
  • But tightening advanced economy monetary policy solely to discourage further borrowing could make the job of getting inflation back to target more difficult."

Shafik said it ws prefereable to use other tools, such as macroprudential tools, rather than monetary policy

Reuters

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Benoit Coeure (ECB board member) also spoke on financial stability at the IMF conference, saying that low rates for a long time creates challenges. On inflation, he said it will come back to target only very slowly.

Neither comment sis controversial.