Hobson: QE is Painfully, Thankfully, Coming to an End

THE WEEK: Quantitative easing, which few people understood, and no one will miss, is  slowly coming to an end says Rodney Hobson

Rodney Hobson 9 March, 2018 | 12:48AM

European Central Bank Mario Draghi ECB quantitative easing QE bond buying

Heads of central banks have a unique method of communicating through what they don’t say. Bank of England Governor Mark Carney tried to break this mould with “forward guidance” but soon learnt that trying to be transparent only provokes a storm of derision from the economists and financial journalists who make a living from interpreting opaque pronouncements for the benefit of the baffled public.

Please bear with me when I say that what was missing from the European Central Bank statement was a vital piece of information for all investors. It is no longer threatening to increase its purchases of bonds. Quantitative easing, which few people understood, and no one will miss, is truly, painfully slowly, coming to an end as Europe follows the US and UK.

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Securities Mentioned in Article

Security NamePriceChange (%)Morningstar
Rating
Countrywide PLC184.00 GBX-0.03
Reach PLC79.10 GBX-1.37

About Author

Rodney Hobson

Rodney Hobson  is a columnist for Morningstar.co.uk and author of several investing books, including The Dividend Investor and How to Build a Share Portfolio.

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