Yael Selfin, KPMG’s UK Head of Macroeconomics, responds to ECB monetary policy decisions, and the Bank of England’s decision to hold interest rates. She said:
“Mario Draghi, President of the European Central Bank, announced today that the ECB policy will remain largely unchanged. In contrast to the UK, the Eurozone economy is in need of stronger monetary medicine. So far Draghi has limited himself largely to verbal reassurances but more concrete action is needed in order to see a true recovery taking hold.
“Despite the Bank of England holding rates today, the clock is ticking on when the rise will come. This continued delay could potentially create a greater shock to consumers when the first rise is announced, as borrowers scramble to adjust. Huge swathes of borrowers have not experienced a rise, and many more have forgotten what it is like.”
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This article represents the views of the author only, and does not necessarily represent the views or professional advice of KPMG in the UK.