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That would only encourage lending to troubled institutions, he predicted.
During the last year the central bank has gone to ever greater lengths to encourage lending.
But they also want to encourage lending and insulate the financial system from future shocks.
The central bank announced further measures to encourage lending by buying asset-backed securities.
He had become a proponent of intervening to provide liquidity and encourage lending.
He concluded the wiser course would be to provide economic incentives to encourage lending.
Speaking in Nottingham on August 28th he also announced a relaxation in banks' liquidity requirements to encourage lending.
But its continued efforts to keep interest rates low are doing nothing to encourage lending by banks.
On June 25th further measures, to make the civil service more meritocratic and to encourage lending to businesses, were passed.
The same limit will be imposed on mortgages covered by the government's help to buy scheme, designed to encourage lending.
The goal of the program was to encourage lending to companies that could not otherwise obtain credit.
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CEO of Professional Science Editing for Scientists @ prosciediting.com