Free Trial

Q on divergence between ECB and Fed

ECB

Q: Are there any risks from the aggressive monetary stimulus on both sides of the Atlantic? Do you expect a longer period of divergence between the ECB and the Fed?

A: We have to look into the potential side effects. The benefits from the monetary policy decisions that we have taken since the beginning of the pandemic outweighs the indirect impact. Looking at the counterfactuals, where would have been if the ECB did not take the decision that it did?

Comparing the US and euro area economies is not on the cards. In terms of inflation, we are starting from a different base. The same is true of the fiscal policy and position in the recovery cycle.

Presser has ended.

To read the full story

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.