BlackRock says ECB can boost growth across Europe by buying stocks

Author: Eamonn Sheridan | Category: Central Banks

BlackRock's chief investment officer of global fixed-income Rick Rieder, writing a piece in the Financial Times. 

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He argues unemployment, particularly youth unemployment, in Europe is still unacceptably too high and recommends further QE from the European Central Bank, specifically to include equity investments in European companies
  • doing so would improve private sector growth prospects
  • Says that the policy of abnormally low-for-long interest rates has caused , and continues to cause, damage to the banking, insurance and pension systems, the hubs of financing and investment
  • The ECB should consider expanding QE to include equity investments to lower the cost of equity for European enterprises. 
More at that link above.
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The ECB meet Thursday this week, July 26. There are no indications the Bank is ready to adopt such a policy. 

BlackRock's chief investment officer of global fixed-income Rick Rieder, writing a piece in the Financial Times. 

  

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