The European Central Bank’s (ECB) balance sheet continues to expand with the central bank gobbling up assets at a record pace under its pandemic emergency purchase program. The central bank’s balance sheet has expanded to more than €6.5 trillion for the first time on record. “Total assets rose by another €27.8 billion last week, most since July, on QE and the balance sheet now equal to 63.6% of Eurozone GDP vs. Fed’s 36.3% and BoJ’s 135.3%,” popular analyst Holger Zschaepitz noted on Monday. The unprecedented balance sheet expansion is bullish for scarce inflation-hedges like gold. The so-called Cantillon effect states that the first beneficiaries of the uneven expansion of money supply are banks and institutional investors, who typically put the money into stocks, real assets. As such, the ECB’s balance sheet expansion is also favorable for stocks. FX Street FX Street FXStreet is the leading independent portal dedicated to the Foreign Exchange (Forex) market. It was launched in 2000 and the portal has always been proud of their unyielding commitment to provide objective and unbiased information, to enable their users to take better and more confident decisions. View All Post By FX Street FXStreet News share Read Next USD/JPY taking on the bearish commitments at 105 the figure FX Street 1 year The European Central Bank's (ECB) balance sheet continues to expand with the central bank gobbling up assets at a record pace under its pandemic emergency purchase program. The central bank's balance sheet has expanded to more than €6.5 trillion for the first time on record. "Total assets rose by another €27.8 billion last week, most since July, on QE and the balance sheet now equal to 63.6% of Eurozone GDP vs. Fed's 36.3% and BoJ's 135.3%," popular analyst Holger Zschaepitz noted on Monday. The unprecedented balance sheet expansion is bullish for scarce inflation-hedges like gold. The so-called Cantillon effect states… Top Forex Brokers All Brokers Sponsored Brokers Broker Benefits Min Deposit Score Visit Broker 1 $100T&Cs Apply 0% Commission and No stamp DutyRegulated by US,UK & International StockCopy Successfull Traders 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 2 T&Cs Apply 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 3 Recommended Broker $100T&Cs Apply No deposit or withdrawal feesTrade major forex pairs such as EUR/USD with leverage up to 30:1 and tight spreads of 0.9 pips Low $100 minimum deposit to open a trading account 9 Visit Site FreeBets ReviewsYour capital is at risk. 4 T&Cs Apply Visit Site FreeBets ReviewsYour capital is at risk. 5 Recommended Broker $0T&Cs Apply Trade gold, silver, and platinum directly against major currenciesUp to 1:500 leverage for forex trading24/5 customer service by phone and email 9 Visit Site FreeBets ReviewsYour capital is at risk.
