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.