BOE's van Steenis Sees Markets Challenged by Currency Volatility

The transcript discusses the current state of currency wars and market volatility, particularly focusing on the impact of Brexit on Sterling. It explores the challenges posed by low interest rates on the financial system and the expectations of further rate cuts by the ECB. The conversation also delves into the role of central banks, their mandates, and the importance of considering financial stability alongside inflation control.

What is the main challenge for market participants mentioned in relation to currency volatility?

• Global trade tensions

• Increased interest rates

• High inflation rates

• Sterling's correlation with Brexit news

What is the expected action of the ECB regarding interest rates?

• Increase rates

• Cut rates further into negative territory

• Introduce new currency measures

• Maintain current rates

What is a potential consequence of a prolonged low interest rate environment?

• Higher inflation

• Stronger currency values

• Challenges for financial institutions

• Increased bank profits

What is the primary focus of a central bank's mandate according to the discussion?

• Employment rates

• Financial stability and inflation

• Currency exchange rates

• Stock market performance

Which economist is mentioned in relation to broader implications for financial stability?

• John Maynard Keynes

• Milton Friedman

• Charles Goodhart

• Paul Krugman