Investors welcome Lagarde with open arms but ECB relies on governments

Ron Markus
Monday, 8 July 2019
Ron Markus

There is an increasing concern whether an even looser monetary policy will stimulate growth as long as the governments don’t provide more fiscal stimulus. That’s why we expect the ECB to wait for more fiscal stimulus and be content for now by preventing a stronger euro. This will probably mean a rate cut to -0.5% and long-term rates that are not far from their bottom.

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