Marcus Ashworth – Head of fixed income at Haitong Securities – joined Nick Batsford and Richard Hunter in the Tip TV studio to discuss the latest news on Central Banks and monetary policy.
Is the UK facing deflation?
With UK inflation forecast at 0.1%, well below the Bank of England’s 2% target, deflationary risks are back on the agenda. Ashworth believes that weak gasoline prices may be dragging the figure down, but Batsford is concerned that Central Banks are still playing down the risks.
‘Flip-flopping’ Draghi.
The Deutsche Bundesbank is currently opposed to further QE in Europe, however Mario Draghi has voiced the opinion that all options remain open. With Eurozone data looking much weaker than the UK and US, Ashworth believes this could put pressure on Draghi to react.