In recent weeks, Governing Council lowered our policy interest rate three times to 0.25 percent, which we consider to be its effective lower bound. These moves were based on analysis of the factors we could measure immediately—mainly the likely fallout on the economy from the collapse in oil prices, as well as the immediate effects of measures to contain the novel coronavirus.
After the major crash that was the financial crisis, many people fear that regulatory reform will lead to an unfettered spiral of regulation. I disagree. As a central banker, I would assess the impact of this reform package by whether we succeed in strengthening the resilience of the financial system.