The European Central Bank needs to go beyond lowering interest rates – which has already been priced in by markets – to boost growth and authorities may be better off ramping up their asset-purchasing programs instead, economists tell CNBC. According to Shane Oliver, Head of Investment Strategy and Chief Economist at AMP Capital Investors, another rate reduction may not make a “huge difference” to Europe’s economy because low rates are not being passed through the system. “They need to do something about the fact that the monetary transmission mechanism in Europe has broken down,” Oliver told CNBC Asia’s “Squawk Box” . “They’ve got record low interest rates but credit conditions in places like Spain, Greece, Italy and so on are incredibly tight. They should be playing a role in making sure that the bond yields in those countries come down.”... Continue to read.
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