The CEO of Barclays, Jes Staley has said that the potential for the governments to deploy the fiscal policies providing stimulus in the year 2020 has created a greater level of optimism in the World Economic Forum this year in Davos than over one year ago.
With ECB cutting the rates of interest to record the lows of -0.5 in the previous year, the president of the central bank of Europe, Christine Lagarde has joined the calls of her predecessor for the governments that are having a good fiscal headroom like Netherlands and Germany to begin the spending programs of that fiscal space to boost the ailing economy of the Eurozone.
The federal reserve of the United States has cut the rates thrice in the year 2019 as the banks all around the world had shifted to a monetary policy which is a lot more accommodative.
United States has been taking that and driving the policy of fiscal stimulus and Staley thinks that it is going to soon start seeing the other countries such as United Kingdom begin doing so and that is going to provide a certain floor for the economies which are lending itself to a lot of optimism in Davos in the year 2020 than what it had in the year 2019.
As the markets are now starting to price a cut in by the Bank of England in 2020, Staley has made a prediction that the government of Britain is going to be embarking upon a program for fiscal spending to invest in the infrastructure as the impact of the monetary policies on the economy globally is diminishing towards the negative.