When the economy is sluggish, the role of fiscal spending is large.

[Boston 16th Reuters]-Bank of England (British Central Bank) President Kearney will respond to the bank's lending by measures to boost bank lending on the 16th, but the government's fiscal spending will play a major role. Showed the idea. I spoke at an event held at Harvard University.

In the event of an economic impact in the event of a dismissal from the European Union (EU), President Kearney will probably increase the countercyclical capital buffer to the current 1% if the economy is hit. Said to reduce to zero percent.

However, he explained that he hopes the government's fiscal spending will complement the central bank's response.

British finance minister Javid has shown the possibility of expanding public investment in the infrastructure sector, aiming to boost the economy after Brexit.

The president pointed out that the world economy is falling into a “liquidity trap” where interest rates are close to zero percent and normal monetary policy is no longer effective. As a result, he stressed that the role of the government's fiscal spending has increased.