Monetary policies and financial markets


The ECB extended its private asset purchase program and also reduced the deposit interest rate to up to -30%.. In the United States, the Fed, increased the benchmark interest rate for the first time in nine years, to 0.25-0.50%.

Public debt markets

The profitability of long-term public debt markets in the United States and Germany have remained at very reduced levels. These assets have been supported by reduced inflation, the accommodating characteristics of monetary policies and doubts concerning global economic growth.

Balance del Banco Central Europeo (miles de millones de euros)

ECB balance sheet (€ billions)
Source: Bloomberg

Rentabilidad de la deuda pública alemana a 10 años (en %)

Yields on German 10-year government bonds (%)
Source: Bloomberg


In Europe, public debt has continued to be supported by the ECB’s monetary policy, In any event, the yield of public debt of these countries has reached historic minimums.

Currency markets

In currency markets, the euro has once again been significantly devalued compared with the dollar and the pound sterling. This depreciation largely occurred in the first quarter, coinciding with the announcement of the purchase of public debt by the ECB.

Financial markets in emerging countries

The financial markets in emerging countries have maintained high volatility and were severely affected during summer, with strong exchange depreciations and an abrupt stock market decline in China.

Tipo de cambio del dólar frente al euro (dólares por euro)

Dollar/euro rate
Source: Bloomberg

Bolsa de Shánghai (índice)

Shanghai Stock Exchange (index)
Source: Bloomberg