Central Banks Spewing Cash Need to Plan Exit Timing, Rohde Says
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Central bankers across the globe need to plan for monetary tightening to avoid feeding asset bubbles, Danish central bank Governor Lars Rohde said.
“Beyond the short horizon, central banks have to be vigilant of the effects, including the effect of negative real interest rates, and they have to plan for an exit as normalization progresses,” Rohde said in an e-mailed reply to questions. Asked whether such policies could fuel asset bubbles, Rohde said, “Yes.”