Pete Hahn, Henry Grunfeld Professor and Dean, spoke at Annual European Money and Finance Forum (SUERF is the French acronym) conference in London in April.
SUERF is a central bankers organisation currently run by the Central Bank of Austria in Vienna. The conference focused on the normalising of interesting rates (expected to increase at some time) and Pete spoke about expected central bank policy actions were likely to affect the banking system.
Pete said his comments regarding exceptional caution for the withdrawal of central bank liquidity to commercial banks and markets were well received and received much debate. He pointed out that the combination of withdrawal of ‘easy’ central bank funding, reduced and ending central bank purchases of corporate and government bonds, and interest rate changes will have broad effects and encouraged all bankers and central bankers to explore not just the obvious areas to be affected.