According to Paul Tucker, executive director, markets, at the Bank of England (BoE), when discussing the risks in today’s capital markets, “there are three things that are impossible to know”.
Aside from the initial surprise that there are only three, it is easy to feel that Mr Tucker might just know such things. In addition to being a member of the monetary policy committee (MPC), his role as head of markets gives him executive responsibility for the BoE’s implementation of monetary policy via open market operations, its foreign exchange market operations (including management of the UK’s foreign currency reserves) and related risk management. He is also responsible for gathering market intelligence and analysis to support the bank’s core purposes to maintain low inflation and financial stability.
