Weekend Edition: Could Europe Bring Down Rates Faster?
European economist Vicky Pryce argues that central bank rhetoric is pushing yields higher and delaying investment. She thinks rates will come down next year, sooner than most are expecting.
NAB Morning Call · NAB - The Morning Call
Audio is streamed directly from the publisher (sphinx.acast.com) as published in their RSS feed. Play Podcasts does not host this file. Rights-holders can request removal through the copyright & takedown page.
Show Notes
Friday 20th October 2023
Please note this communication is not a research report and has not been prepared by NAB Research analysts. Read the full disclaimer here.
We invited UK-based economist Vicky Pryce on to talk about why Europe was struggling with growth whilst the US was on the road to recovery? How much is down to the issue of applying a single monetary policy across a diverse range of EU member economies? How much is the fact that Europe hasn’t injected as much fiscal stimulus as the US, with its Inflation Reduction program? All of the above applies, but Vicky suggests, with inflation on the way down, the ECB, BoE and other central banks shouldn’t be delaying lowering interest rates, to enable economies to recover. Central banks need to change their rhetoric so bond yields subside, and they need to ease off quantitative tightening until a more appropriate time. A very different perspective to the IMF that has warned that easing too quickly can cause inflation to re-emerge.
Hosted on Acast. See acast.com/privacy for more information.