Be Bold!

Mark Carney, the incoming Bank of England Governor, has warned that Europe could face a decade of stagnation unless it takes the kind of bold measures seen in Japan.

Carney is quoted by the Telegraph, whilst making his last speech as Governor of the Bank of Canada:

“Europe can draw lessons from Japan on the dangers of half measures... Europe remains in recession. Deep challenges persist in its financial system. Without sustained and significant reforms, a decade of stagnation threatens.”

His comments give more traction to the rumours that the ECB is considering negative interest rates.

Turning Japanese

In echoes of Japan in the 1980's/90's, it seems that the ECB is going down the path of negative interest rates.

As per Financial Acrobat:

"More rumours about negative rates from ECB. Said to have contacted German bank to ask if they could cope with it. It is likely true."

I loved the 80's!