Another Notch for ‘Central Banks Have No Ammo’



Posted by Ed 36 days ago
Powerless policy makers lead financial commentary. Plus additional signs of weakness.
 A big argument of those who are bearish on riskier assets such as equities and corporate debt is that central banks have largely lost the ability to spur economic growth given how much they have eased monetary policies since the financial crisis. Time will prove whether the argument is valid, but at least on Thursday it seemed credible.

The MSCI Emerging Markets Index of equities fell even though central banks in South Korea, Indonesia and South Africa all cut interest rates on Thursday.

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