Covid-19: Who’s coming to the rescue?

Stagflation to the debt rescue? Rob Carnell thinks not. The EU to the rescue? Plenty of horse-trading ahead. Here's your roundup of this week's biggest stories from ING Research as the fight to bring the Covid-19 crisis under control continues

In this bundle

Rob Carnell: ‘Sadly, we’re not going to get stagflation’

Stagflation will not be a consequence of the Covid-19 crisis. So says ING's Rob Carnell who thinks it could be a solution to the huge debt problems…

Revealed: The EU’s massive recovery fund

The European Commission has finally revealed its plan for an EU recovery fund, and it's €750bn, larger than the French-German proposal. If…

and

Germany

Germany: This is not a ‘v’

The just released Ifo index adds to evidence that the worst should be behind us. However, the route to normality will be long.

ECB preview: More

We expect the European Central Bank to announce that it will increase its Pandemic Emergency Purchase Programme at next week’s meeting

EUR/USD: Playing catch-up with $ crosses

The euro is enjoying a rally today as investors gauge the viability of plans for a €750 billion recovery fund created out of the EU’s long-term…

Report FX

FX Talking

FX Talking: Blind optimism

Over the last month we have seen a wave of confidence lift the high beta, commodity currency bloc. Concerns over a resumption in the US-China trade…

and

Polish central bank cuts rates close to zero as the zloty appreciates

The Polish policy response to battle the economic fallout from Covid-19 has been large but even then the central bank slashed rates close to zero in spite…

Malaysia

Malaysia macro update – It’s downtime

First the political jitters, then the pandemic and related controls on movement and then an oil price crash – all have borne down on the Malaysian…