Rathbones’ Smith: “ECB bazooka futile in the long run”
Rathbones’ Smith: “ECB bazooka futile in the long run”
12 September 2019
Article last updated 19 February 2023.
“The ECB has announced its open-ended QE bazooka, as well as more generous long-term refi operations (LTROs). While monetary stimulus is likely to stave off recession, Europe will remain weak and vulnerable, and recession is still a distinct possibility. However, there’s little evidence yet to suggest “Japanification”. Throwing money at the problem is just that; it doesn’t address the underlying structural and cyclical issues. Arguably, years have been wasted where the focus should have been on fiscal, not on monetary stimulus. So while there is some short-term reprieve for Eurozone equities, our research shows that they remain more sensitive to changes in Chinese or global business cycles than to changes in the Eurozone cycle, meaning any uplift is unlikely to be sustained.”
Ed Smith
Head of Asset Allocation Research
For more information, please contact:
Madhu KaliaIntermediary PR (UK/Europe)
Rathbone Unit Trust Management
020 7399 0256
07825 596302
madhu.kalia@rathbones.com Sam Emery
Quill PR
020 7466 5056
sam@quillpr.com
