Shant: Sluggish policy response may have pushed Europe into a dead end

Newton manager believes tightening policy now could be detrimental to growth.

Newton’s Rajesh Shant has warned the eurozone recovery has been hampered by “failing” monetary policies as new data on growth disappoints. The manager of the group’s £260m Continental European fund, and head of European equities at the group, said fresh data on slowing growth will threaten the ECB’s planned rate hikes as the economy may be unable to cope with tightening measures. “Interest rates have been kept too low for too long and, at this stage, the economy may not be able to bear hikes,” he said. Shant believes ECB President Jean-Claude Trichet may still opt for a further hik...