Monetary policy

The ECB’s new stimulus package adds to top-line challenges for European banks though the measures should support loan quality and asset valuations, says Scope Ratings.

According to Bastien Drut, Senior Strategist at CPR AM, the context of the US economy in 2019 is not unlike that of 2007, that is to say, a period of economic slowdown that preceded the recession of 2008/2009.

The European Central Bank (ECB) meeting today was anticipated by investors with a range of expectations across the market from the hopeful to the pessimistic. With market-implied medium term inflation expectations close to all-time lows, Draghi’s reputation as the ‘man who can’ in Europe is on the line.

In the decade following the Great Recession, central banks in developed countries have resorted overwhelmingly to unconventional measures to satisfy their mandates, be they dual (price stability and full employment) or solely focused on price stability...