Investment Clock insights

Eurozone has dodged 'Brexit' bullet so far

Ian Kernohan

8 September 2016

There was no great excitement in today's European Central Bank (ECB) meeting, interest rates, quantitative easing purchases and the March 2017 timetable remain as before. Although growth forecasts have been trimmed, Mario Draghi did say that the ECB did not discuss extending quantitative easing. 

So far, the eurozone economy has dodged the Brexit bullet, however growth remains tepid, inflation is far below target and political risks are growing, including potential fallout from the Brexit negotiations.  

We still think that the ECB will move to ease policy further, while the US Federal Reserve is clearly biased towards tightening monetary policy and raising rates in the future.

The value of investments and the income from them is not guaranteed and may go down as well as up and investors may not get back the amount originally invested. The views expressed are the author’s own and do not constitute investment advice.