Asset Allocators' Soapbox: Have we reached the monetary stimulus tipping point?

Have we reached the monetary stimulus tipping point?

clock • 4 min read

Anthony McDonald and Peter Toogood ask how much longer it is appropriate to maintain such easy levels of monetary policy...

When we step back from the day-to-day noise, it is extraordinary to consider that interest rates in the key developed economies have been at emergency, near-zero levels for over five years and continue to be complemented by unprecedented levels of further monetary stimulus. That was certainly not the expectation when quantitative easing was first initiated in the US in late 2008, to help pull the economy out of the financial crisis. The accommodative monetary policy has helped create an environment conducive for asset prices. Over five years, UK equities have soared by 92.6% and are i...

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