Interest rates and the banking business post pandemic
Fecha: enero 2021
Santiago Carbó Valverde, Pedro Cuadros Solas, Francisco Rodríguez Fernández
Interest rate, COVID-19
While central bank policies, such as ultra-low interest rates, have staved off liquidity crunches and episodes of heightened uncertainty, they have also distorted financial markets, reduced bank profitability, and potentially undermined the ability of central banks to meet their medium-term inflation targets. As the economy recovers and interest rates potentially rise, central banks will need to consider other actions that support the health of Europe’s banking sector.