By Mike Dolan
LONDON, Oct 2 (Reuters) – Central banks may not be out of ammunition just yet but parts of their strategic policy rethinks related to inequality and fairness raise questions about the extent they should use it.
Ever since the last financial crisis 12 years ago, investors have fretted about a moment when central banks – having floored borrowing rates to zero or below and ballooned their balance sheets – would simply run out of ways to support increasingly indebted economies and panic-prone markets.
The massive monetary response to this year’s pandemic shock to date showed there’s plenty still in the armoury. Policymakers insist they have more firepower if needed and both the Federal Reserve and European Central Bank are now loosening long-term inflation or employment goals as additional policy guidance.
But with borrowing rates already so low, and with a reluctance to go deeply negative for