For example, lowering interest rates reduces the debt burden and the returns on savings and may lead to higher asset prices. Over time, it tends to spur economic activity and push up labour demand, as well as wages and consumer prices.
I would be reluctant to see our large banking institutions releasing the capital and liquidity buffers that they have built so effectively over the past few years, at a time when cyclical pressures and vulnerabilities in the broader financial system are building.