Carney warns of downsides to European QE

Laura Dew
clock

Bank of England governor Mark Carney has warned that last week's announcement of quantitative easing in Europe could lead to excessive risk-taking.

Mario Draghi, president of the European Central Bank, announced a €1.1 trillion QE package for Europe last Thursday. Speaking at the World Economic Forum in Davos, Carney (pictured) warned the European Central Bank's programme could pose problems if it overheated markets.  "In an environment of low interest rates and low interest rates for a period of time, and also quantitative easing, there can be excessive risk taking," Carney said. "What those monetary policies are looking to do is move from an environment of reticience to take risk to responsible risk taking. We are trying to ...

To continue reading this article...

Join Investment Week

  • Unlimited access to real-time news, analysis and opinion from the investment industry, including the Sustainable Hub covering fund news from the ESG space
  • Get ahead of regulatory and technological changes affecting fund management
  • Important and breaking news stories selected by the editors delivered straight to your inbox each day
  • Weekly members-only newsletter with exclusive opinion pieces from leading industry experts
  • Be the first to hear about our extensive events schedule and awards programmes

Join now

 

Already an Investment Week
member?

Login

More on Economics

Demand for key inputs will rise sharply, as nations look to accelerate their renewables programmes.
ESG

Greenflation: What are the drivers and how long will it last?

Metal price rises 'structural'

clock 12 August 2022 • 3 min read
The reduction was less than the 0.3% decline forecast by analysis

UK economy shrinks by 0.1% as cost-of-living crisis sets in

‘Difficult to dodge recession’

clock 12 August 2022 • 2 min read
Partner insight: Out of the wilderness

Partner insight: Out of the wilderness

Solving the problem of inertia in cash gives opportunities to both advisers and their clients, say Flagstone's Claire Jones and Grovewood Wealth Management's Lynne Gadsden.

Lynne Gadsden @ Flagstone
clock 11 August 2022 • 1 min read
Trustpilot