ECB ‘is in a policy no man’s land’ over economy

Boxed in by its own plans, bombarded with news of a stagnating eurozone and facing strong opposition from the continent’s economic powerhouse, the European Central Bank is in a policy no-man’s-land as its options to revive the region’s economic fortunes dwindle.

That is according to Merrion Stockbrokers’ chief economist Alan McQuaid who, in a bond market review released yesterday, also said that falling German yields are causing concern over a “lost decade” of economic stagnation similar to that experienced in Japan in the 1990s.

Mr McQuaid said that quantitative easing — whereby the money supply is increased in an effort to encourage lending — is the ECB’s sole remaining option to ignite the eurozone economy.