‘Significant increase’ of QE in 2013: Fidelity’s Rossi
Fidelity’s chief investment officer for equities Dominic Rossi has said quantitative easing (QE) will be “much more pronounced” in 2013.
Mr Rossi (pictured), speaking on a client webcast, said while the Bank of England (BoE) had expanded its balance sheet to the point where it owns roughly 30 per cent of the gilt market, other central banks had not actually expanded their balance sheets in the same way.
“The BoE is the exception,” he said.
“The US Federal Reserve and the European Central Bank (ECB) have not expanded their balance sheets much this year as the Fed used operation Twist which involved selling two-year debt to buy 10-year debt and the ECB has talked about the Outright Monetary Transactions (OMT) policy but not used it.”