"We have to find creative ways forward which as best possible both increase resilience and support lending and as a result, maintain nominal demand"
- Financial Services Authority Chairman Adair Turner
Britain's £375 billion stimulus program has run out of steam and fresh measures to stimulate economic growth must be found, according to Financial Services Authority Chairman Adair Turner. The central bank has already injected money into the economy by buying government bonds, while further cut of interest rates may have no significant impact, as they are already close to zero.
"We have to find creative ways forward which as best possible both increase resilience and support lending and as a result, maintain nominal demand," said Financial Services Authority Chairman Adair Turner.
"The rules on bank capital and liquidity were woefully deficient - an entire global banking system allowed to run with equity capital resources and liquidity buffers which we now believe were a small fraction of safe levels."
The FTSE 100 Index turned lower 0.62 per cent to 5,793.32. The broader FTSE All-Share Index declined by 0.59 per cent to 3,025.62.
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