Monetary and fiscal stimulus unleashed on markets – now what?
‘When you look at the different indices, it is very clear this is panic’
‘When you look at the different indices, it is very clear this is panic’
The Bank of England Monetary Policy Committee (MPC) has voted unanimously to raise rates to 0.75% at its August meeting.
Boutique asset manager Kestrel Investment Partners is increasing exposure to Europe’s financial, telecom and pharmaceutical sectors on the back of the European Central Bank’s quantitative easing (QE) decision.
The Bank of England has voted seven-to-two to keep rates on hold at 0.5%, but the government’s recent signing of a Brexit transition deal means markets consider a May hike a done deal.
Investors have been told to prepare for slower economic growth in the second half of the year, although a global recession should be avoided.
The effectiveness of monetary policy implemented in the aftermath of the 2008 financial crash will be the focus of newly-launched government inquiry.
With a December interest rate rise now close to certain, investors will no longer be trying to assess when the Federal Reserve will raise rates next, but what the path will be after this.
With news overnight that the Bank of Japan has unveiled a new form of stimulus, professional investors and economists reacted with mixed enthusiasm.
With children now back at school and pubs starting to put up the Christmas decorations (I kid you not), the summer holidays already seem like a long time ago and the constant cries of ‘are we nearly there yet’ – only to have the little darlings fall asleep 20 minutes before you finally reach the…
The European Central Bank decided to stick rather than twist today as it announced the deposit rate has been held at -0.4%, the refinancing rate held at zero, and the details of its €80bn per month quantitative easing programme are unchanged.
As France and other parts of the eurozone return to work after an August on the beach or in the countryside, the focus of investors turns once again to Mario Draghi and the European Central Bank.
The ultra-loose monetary policy pursued by central banks since the financial crisis has implied an unprecedented fall in discount rates, which has led to a massive front-loading of returns: not only for bonds, but also for equities. Does this mean you should take your profit now and sell?