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Epic Research
After the disappointing Jackson Hole conference, global markets are now focused on the European Central Bank (ECB) on September 6. This meeting would be crucial in deciding if the global risk on rally would sustain.
Gerard Lyons of Standard Chartered told CNBC-TV18 that though global markets are not expecting a rate cut, but there is a possibility of the ECB doing it. In addition to that, a bond buying program may also be announced , he said.
“The ECB has made clear that low interest rates are not having their full impact in terms of helping the European economy because the transmission mechanism of monetary policy has not been helped by the high level of bond yields. So, ECB will buy the debt of likes of Spain and Italy,” he added.
Gerard Lyons of Standard Chartered told CNBC-TV18 that though global markets are not expecting a rate cut, but there is a possibility of the ECB doing it. In addition to that, a bond buying program may also be announced , he said.
“The ECB has made clear that low interest rates are not having their full impact in terms of helping the European economy because the transmission mechanism of monetary policy has not been helped by the high level of bond yields. So, ECB will buy the debt of likes of Spain and Italy,” he added.