Home Banking Fiscal danger of interest on reserves overblown, Future of payments

Fiscal danger of interest on reserves overblown, Future of payments

by admin

Fiscal danger of interest on reserves overblown, Future of payments

.

Tuesday 8 December 2020 – Vol.11 Ed.50.2 a

Commentary: Fiscal danger of interest on reserves overblown

By Danae Kyriakopoulou, Pierre Ortlieb and Chris Papadopoullos in London

The UK Treasury’s plans for continued higher spending in response to the Covid-19 crisis have sparked fears about debt sustainability. The OBR has remarked that greater UK debt levels make public finances more vulnerable to interest rate increases. A cause of larger interest rate sensitivity was the payment of interest on reserves kept at the BoE. Fears that this poses a threat to the UK’s fiscal position are overblown.

Read the full commentary on the website.

Meeting: Future of payments

.

Thursday 10 December, 15:00-16:30 GMT

For the launch of the latest OMFIF Digital Monetary Institute report on the future of payments, a panel discusses notable developments in electronic payments, outlining next steps for national and cross-border governance frameworks. It discusses when and how differing payment innovations are necessary, the role of technologies such as blockchain and the challenges ahead for public-private partnerships.

Request to attend the meeting.

You may also like

Leave a Comment