ECB’s Constancio: Diverging Fed/ECB could have greater repercussions that in the past

By FXStreet FXStreet (Bali) – European Central Bank vice president Constancio, speaking in HK, in a speech entitled ‘Diverging monetary policies, global capital flows and financial stability’, said diverging monetary policy between US and Eurozone could have greater global repercussions that in the past.

Key headlines

Sees ‘potential spillovers’ from zero lower bound exit

Sees euro area spillovers smaller than those of US

Sees risk of durable fragmentation of system

With huge us dollar debt being created around the world without liquidity backstops, we are still far from having a global lender of last resort adequate for our times

Sees monetary, financial system at ‘a sort of crossroads’
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Source:: FX Street