EconoMonitor

RGE Analysts

RGE’s David Nowakowski on CNBC: ECB Must Implement Creative Policy

Today, David Nowakowski, RGE Director of Fixed Income and Credit Strategy, told CNBC that, given the current low policy rates in the eurozone, a rate cut by the ECB does not make a difference, noting that although the repo rate is at 75 bps, the interbank rates are much lower after LTROs earlier in 2012, and after cutting deposit rates to zero. He argues that the ECB must do implement more creative measures, with QE unavailable, such as communications policy. “But,” he notes, “I don’t think they’re there yet, after today.” He argues that the ECB must not fall behind the curve.

View the original here

Comments are closed.

Most Read | Featured | Popular

Blogger Spotlight

Aaron Menenberg Policies of Scale

Aaron Menenberg is Foreign Policy and Energy analyst, and a Future Leader with Foreign Policy Initiative. He also co-hosts Podlitical Risk (@podliticalrisk). He is a graduate student in international relations at The Maxwell School of Syracuse University. Previously he has worked at Praescient Analytics, The Hudson Institute, for the Israeli Ministry of Defense, and at the IBM Corporation. The views expressed are his own, and you can follow him on Twitter @AaronMenenberg. He welcomes questions and comments at menenbergaaron@gmail.com.