What has been the impact of the bank’s purchases, and what can we expect in the sterling credit market once the BOE withdraws?
The UK is about to enter a period of potential uncertainty, and the greatest gift the Chancellor can provide to the government is economic protection.
There is a strong case for the ECB to continue tapering its QE programme, to alter its forward guidance and to begin normalising policy rates.
Geraldine Sundstrom, managing director and portfolio manager, discusses the importance of equities as an asset class when investors believe in both global growth and inflation.
A series of surprises on the French political scene have fueled investors’ unease.
How can the BOE justify doing nothing – holding interest rates steady and offering no strong view on the direction of monetary policy – while also increasing its growth forecasts, at a time when it already expects inflation to overshoot the target for the next three years?
We see little probability of high core inflation rates in the eurozone, but instead a gradual increase toward the ECB target of just below 2% over the next few years.
Italian banks are burdened by bad loans, but we believe the cost to revive the banking sector is manageable.
PIMCO interprets the ECB’s decision to lower the asset purchase rate as acknowledgement that 2% is an ambitious inflation target to achieve.
The “No” vote has cost Italy a chance to make its political system leaner and more conducive to reforms.