This content is not available in your region

BlackRock's Mateos y Lago says she is cautious on Europe

Access to the comments Comments
BlackRock's Mateos y Lago says she is cautious on Europe
FILE PHOTO: A sign for BlackRock Inc hangs above their building in New York U.S., July 16, 2018. REUTERS/Lucas Jackson/File Photo   -   Copyright  Lucas Jackson(Reuters)
Text size Aa Aa

STOCKHOLM (Reuters) – A fiscal policy that is constrained and a European Central Bank that is most likely doing too little too late are reasons to be cautious on investing in Europe, BlackRock’s deputy head of official institutions group said on Thursday.

A weakening euro zone economy, hurt by global trade tensions, has once again put the spotlight on what European policymakers can do to lift a sluggish economy.

“If the U.S. gets hit by a shock, the Fed will cut interest rates, we will have extra fiscal stimulus. But look at the euro area, the ECB is doing what it can, but will it be able to do a whole lot more? No,” BlackRock’s Isabelle Mateos y Lago said at the International Capital Markets Association conference in Stockholm.

“The ECB policy reaction at best is probably too little too late, the fiscal reaction is constrained by rules in place, and this is the reason to be cautious on Europe,” she said.

(Reporting by Virginia Furness; Writing by Dhara Ranasinghe; Editing by Tommy Wilkes)

euronews provides breaking news articles from reuters as a service to its readers, but does not edit the articles it publishes. Articles appear on for a limited time.