Europe Could See ‘Higher’ Neutral Rate, Vanguard Says

Vanguard Global Chief Economist Joseph Davis discusses the ongoing global bond selloff on the back of Germany’s spending plans, which could reshape Europe’s growth outlook. Speaking on Bloomberg Television, he says for Germany and Europe this will likely lead to “higher structural deficits,” which are “generally supportive for growth but not massively so.” Davis also adds that Europe may see “a neutral rate that’s markedly higher than where it was just a few months ago.” (Source: Bloomberg)Read More