Podcast: The European Central Bank is ending Quantitative Easing
About the author:
- Author name:
- By Michael Knox
- Job title:
- Chief Economist and Director of Strategy
- Date posted:
- 21 September 2018, 12:49 PM
We look at how an end to QE in December should put upward pressure on the Euro.
"By the end of this year the European Central Bank will stop buying bonds. That means they'll also stop buying German bonds. Why are we interested in German bonds? Turns out that German bond yields are really important in determining the level of the Euro. If you stop buying German bonds as part of quantitative easing what will happen is that German bond yields will rise and that will make the Euro more attractive."
I discussed this in my latest presentation to the network:
Listen to the podcast
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