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I think it stems from a misconception of what QE does, as well as an overuse of the term "liquidity".
The weighted average call money rate (WACR), which is the average of all call money rates governing India's short term liquidity demand has been very volatile lately.
I'd like to see them flood the market with short term liquidity, not just £40 billion but, say £100 billion or £200 billion – the bigger the number the better.
One initiative alone, the Term Liquidity Guarantee Program, likely saved banks an estimated $24 billion in borrowing costs.
Investigators said Illarramendi's funds have included a Short Term Liquidity Fund said to once have $540 million of assets.
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Predicting financial activity through examining the short-term liquidity is crucial within today's turbulent financial environment.
This will enable banks to continue to have access to long-term liquidity on demand.
The network of bilateral swap and repurchase agreements provides significantly greater short-term liquidity.
However, says S&P, the company's efforts mean that the likelihood of a short-term liquidity squeeze has diminished.
The long-term liquidity rules, aimed at dealing with a prolonged downturn, may never see the light of day.
Have banks been more willing to look at a company's fundamentals and prospects, underneath any short-term liquidity difficulties?
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