ECB warns against protectionism after quantitative easing programmes

3 June 2013

European Central Bank (ECB) executive board member Benoit Coeure has said the recent money being pumped into markets by the world's central banks in order to stimulate growth must not result in further protectionism.

Speaking at a conference at the Bank of Korea, Mr Coeure was expected to say the recent quantitative easing in the US has not had much of an impact on asset prices elsewhere in the world, Reuters reports.

The Bank of Japan announced on 4 April its new policy strategy, which would see $1.4 trillion pumped into the economy in an attempt to end years of stagnation in the market.

However, the quantitative easing by Japan and the US has become a concern for other nations that believe these measures will destabilise their own economies by fuelling inflation and will put pressure on their currencies, making exports less competitive.

The Bank of Korea cut its policy interest rate by a quarter of a percentage point in May, which was largely seen as a move to mitigate the pressure on the won after the yen's slide.

By Asim Shah

Become a bobsguide member to access the following

1. Unrestricted access to bobsguide
2. Send a proposal request
3. Insights delivered daily to your inbox
4. Career development