Central Banks Need To ‘Disappoint Markets’: On Way Out Door, Nowotny Says ECB Won’t Buy Stocks

Anybody hoping the ECB is going to buy stocks at some point will probably be disappointed. That's according to the outgoing Ewald Nowotny, who told reporters on Friday that he "would completely exclude" equity purchases as an option for the central bank. "For Europe it is inappropriate", Nowotny said. Over the past several days, a procession of ECB hawks have been keen on pushing back against what the market expects will be an effort to over-deliver at the September meeting, at which Mario Dra

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One thought on “Central Banks Need To ‘Disappoint Markets’: On Way Out Door, Nowotny Says ECB Won’t Buy Stocks”

Perhaps they are finally beginning to recognize the feedback loops that ensue with increasingly reckless use of monetary policy. This view would be held irrespective of the very real disappointing growth and inflation data. Perhaps they are finally recognizing the long term ramifications of what’s been done. Whether or not the austerity exists to actually continue to follow through with such idealism remains doubtful, but it would be a welcome reprieve from the horrendous global swamp of liberal imonetary sentiment that exists today.