“Investors Are Dangerously Unprepared” – Axel Weber, Former Bundesbank Head Warns Of Coming Rate Hikes By ECB
by Michael Shedlock via MishTalk.com,
ZeroHedge.com
Dec 5, 2016
Axel Weber, former head of Germany’s central bank says the ECB is going to halt QE soon and hike rates by September.
Weber warns Markets Unprepared for Central Bank Shifts.
Investors are dangerously unprepared for a sharp rise in eurozone bond yields when US interest rates march higher and European quantitative easing ends, Axel Weber, chairman of UBS and the former head of the Bundesbank, has warned.
The jump in US rates could spark big jolts in the markets as the long spell of aggressive monetary easing across the globe has left many investors off-guard over a swing in the global rate cycle, he added.
“I don’t think we will have increasing divergence among the major central banks in the world for much longer,” Mr Weber said, predicting that Europe would follow the US with a rate rise by next September at the latest. “I think the ECB is closer to slowing its current quantitative easing programme than many in the market expect.”
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