BoE Executive Director Andrew Hauser said in a speech, the central bank balance sheets will be “structurally larger”, comparing to the start of the millennium, even after current QE program unwind. Central will need to meet at “bigger share of the structurally higher demand for liquidity; and contemplate possible Central Bank Digital Currencies.”.
Also, the balance sheets will be “more variable as lower global interest rates and a broader liquidity insurance toolkit mean balance sheets play a more active countercyclical role.”.
