Responding to the Bank of England’s latest Financial Stability Report, Fran Boait, executive director of Positive Money said:
“As the Bank of England’s latest report shows, there are growing material risks to financial stability, particularly from external sources. It is therefore no surprise that in his Mansion House speech last week, the Chancellor announced that the Bank would be given the power to lend over half a trillion pounds in order to shore up the UK’s financial system.
“However such measures alone do not address the underlying weaknesses of the UK economy referenced in today’s Financial Stability Report which makes Britain particularly vulnerable to global shocks, such as the G7’s largest current account deficit.
“Rather than responding to a future downturn by simply providing more liquidity for a broken financial system to abuse, the Bank needs to be given new tools to boost the real economy, such as the power to stimulate productive investment through overt monetary financing.”
About Positive Money
Positive Money campaigns for a money and banking system which supports a fair, democratic and sustainable economy. Set up in the aftermath of the financial crisis, Positive Money is a not-for-profit company funded by charitable trusts and foundations, as well as small donations from its network of over 65,000 supporters.
