Doing the cycle

Dovish comments from the European Central Bank’s next chief suggest the bank could present a major stimulus package in September, according to a prominent currency analyst.

Christine Lagarde, the former head of the International Monetary Fund who has been nominated for ECB President, told the European Parliament in written comments that the central bank has room to cut policy rates. It is “clear that monetary policy needs to remain highly accommodative for the foreseeable future,” she wrote.

Right on time. Accommodative means help Club Med increase debt ratios.  This is leading to a long term deflation, like Japan.