Carney warns of downsides to European QE

Bank of England governor Mark Carney has warned that last week's announcement of quantitative easing in Europe could lead to excessive risk-taking.

Mario Draghi, president of the European Central Bank, announced a €1.1 trillion QE package for Europe last Thursday. Speaking at the World Economic Forum in Davos, Carney (pictured) warned the European Central Bank's programme could pose problems if it overheated markets.  "In an environment of low interest rates and low interest rates for a period of time, and also quantitative easing, there can be excessive risk taking," Carney said. "What those monetary policies are looking to do is move from an environment of reticience to take risk to responsible risk taking. We are trying to ...