15 October 2014

Guy Foster, Chief Strategist and Head of Research at Brewin Dolphin says:

"It is a final irony, that the current weakness in commodity markets is likely to be substantially more stimulative than the outgoing raft of official measures in the Anglo Saxon economies.  Quantitative easing worked through buying government bonds, to lower government borrowing costs, which in turn lowers corporate bond prices and thereby encourages investment. The extent to which that feeds through to households and small businesses is difficult to quantify (!) but it is clearly far from direct.  By contrast, a fall in the oil price represents cost savings for almost every economic strata, from large airlines and shipping companies to sole traders and commuters. So for all net importers of oil including the UK and the Eurozone - this is a welcome boost."

 Please read Guy's full note on the markets here

-ENDS-

For further information please contact Guy Foster on 020 3201 3417


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