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...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Economics / Markets

Reeves defends yearly Budget to avoid 'constant chopping and changing'

Reeves defends yearly Budget to avoid 'constant chopping and changing'

Treasury Committee scrutinises chancellor on Spring Statement

Isabel Baxter
clock 02 April 2025 • 3 min read
Five key takeaways from the Spring Statement 2025

Five key takeaways from the Spring Statement 2025

OBR growth, ISA reforms and defence

Sorin Dojan
clock 27 March 2025 • 4 min read
Bank of England halts interest rate cuts amid ongoing inflation

Bank of England halts interest rate cuts amid ongoing inflation

As priced in by markets

Sorin Dojan
clock 20 March 2025 • 2 min read