Asset Allocators' Soapbox: Have we reached the monetary stimulus tipping point?

Have we reached the monetary stimulus tipping point?

clock • 4 min read

Anthony McDonald and Peter Toogood ask how much longer it is appropriate to maintain such easy levels of monetary policy...

When we step back from the day-to-day noise, it is extraordinary to consider that interest rates in the key developed economies have been at emergency, near-zero levels for over five years and continue to be complemented by unprecedented levels of further monetary stimulus. That was certainly not the expectation when quantitative easing was first initiated in the US in late 2008, to help pull the economy out of the financial crisis. The accommodative monetary policy has helped create an environment conducive for asset prices. Over five years, UK equities have soared by 92.6% and are i...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Economics / Markets

Five years on from Covid: What's next for markets?

Five years on from Covid: What's next for markets?

It is now five years since the start of the UK’s Covid lockdown. Since then, we have seen considerable market and geopolitical-related change. Here, William Marshall looks back over the past five years and also explores what we might expect from markets...

William Marshall
clock 06 May 2025 • 4 min read
Gilt yields fall after Donald Trump backs down in 'tariff war'

Gilt yields fall after Donald Trump backs down in 'tariff war'

US president pauses most additional tariffs

Jonathan Stapleton
clock 10 April 2025 • 2 min read
Reeves defends yearly Budget to avoid 'constant chopping and changing'

Reeves defends yearly Budget to avoid 'constant chopping and changing'

Treasury Committee scrutinises chancellor on Spring Statement

Isabel Baxter
clock 02 April 2025 • 3 min read