M&G's Isaacs says Draghi's 'volte-face' could lead to ECB QE

M&G's Stefan Isaacs has pointed to the "surprisingly dovish" statement from ECB president Mario Draghi as a sign the bank may introduce fiscal stimulus sooner than the market expects.

The manager of the £2.3bn European Corporate Bond fund and the £1.3bn High Yield Bond fund said Draghi's guidance that the ECB would hold rates for an extended period of time, was "something of a volte-face". "The willingness to offer forward guidance to the market no doubt came after some long and hard introspection within the Governing Council," Isaacs (pictured) said. "So why the change? Firstly, the ECB is worried that it may miss its primary target of maintaining inflation at or close to 2% over the medium term. "Secondly, Draghi indicated an increasing concern that the real econ...