Evans, Charles

I think we’re in a liquidity trap where there is excess savings, greater than investment. It would take a lower real interest rates to address that.

But, look, if the right thing to do for the macro economy is to have lower interest rates but that comes with some risk for the financial system, we’ve only got one monetary policy tool and we have to focus on our mandate. But we have other supervisory tools which are supposed to  address emerging risks in financial markets. I think they have to be used.