Central banks ready to act ‘quickly as needed’ if there’s a ‘rapid demise’ in confidence

Franklin Templeton Investments’ Fixed Income Director Andrew Canobi says central banks are left to “plug the gap” when consumers or counter-parties to the banking system lose confidence. He said Credit Suisse and UBS suffered a “rapid demise” as confidence was lost in the community. “I think central banks have the tools and they are deploying them, deploying them quickly, and this is again probably not the last time we see some of these measures brought out into the marketplace as we go through this very, very significant period of monetary tightening,” he told Sky News Business Editor Ross Greenwood. “But they do stand there ready to act quickly as needed.”