Sovereign debt boss slams full QE as intervention prospects grow

EU SOS
By Craig McGlashan
13 Nov 2014

The European Central Bank’s room to manoeuvre is being crushed as more and more voices call for it to embark on full scale quantitative easing by way of the purchase of sovereign bonds. But a senior sovereign funding official for one of the countries most likely to benefit from further spread compression in the eurozone offered a scathing assessment of the disruptions such a programme could cause.

Bankers report that major investors in the US and other countries may take their money out of the eurozone if the ECB does not deliver on full QE. Meanwhile on Thursday, a group of economists polled by the ECB reduced their inflation and GDP ...

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