ECB strategy review: The investment implications
The investor takeaway
Ultimately, for investors the 2025 strategy review implies a continuation of the market-friendly philosophy championed under former ECB President Mario Draghi. Despite the perils of using non-standard instruments like quantitative easing, a point raised time and again by Executive Board Member Isabel Schnabel and recently stressed by the Bundesbank, all such extraordinary instruments and measures remain on the policy menu.
This is also very important from the point of view of monetary policy transmission, which may suffer from substantial side-effects in the neighbourhood of the so-called reversal rate – the level of interest rates below which monetary stimulus becomes counterproductive – and…
