PARIS (AFP) – The European Central Bank can benefit from its US counterpart’s solid track record with quantitative easing as it launches a similar programme next month, a prominent fund manager said.
“Sometimes going second has its advantages,” Brian Jacobsen, strategist for Wells Fargo Asset Management, told AFP in an interview. “The ECB has learned a lot from having the Fed go first.”
Noting that the United States did not see a surge in inflation as a result of QE, he said “maybe the public can be a bit more confident that the ECB’s programme won’t lead to runaway inflation.”
The ECB in January unveiled a programme to buy 60 billion euros ($68 billion) of private and public bonds each month starting in March, a move intended to ward off deflation in the eurozone. Asked how the eurozone bond market was preparing for the injection, Jacobsen said: “Investors have gobbled up sovereign debt in the wake of the (January 22) announcement.