‘Our stock exchange is the leading beneficiary of the change in monetary policy’: WSE President
16:00
The Warsaw Stock Exchange (WSE) is the leading beneficiary of the change in monetary policy towards zero interest rates, according to the statements of the president of the Warsaw Stock Exchange, Marek Dietl. Currently, the WSE is the third-largest market in terms of turnover growth in the entire European Union.
"In Poland, this effect of [zero rates] was very strong and [caused] a large inflow of money to the capital market. US stock exchanges are in a wide stream of money, and a little less broadly, despite a large monetary expansion: low rates, money printing – in the EU. European stock exchanges are very weak," Dietl said.
"In the European Union, there is also an undeniable role of private equity funds, which metabolize this printed euro in large amounts because they enjoy very easy access to capital. A leveraged buyout is very simple, investors' expectations for return are low, which pushes up the valuation of enterprises. You can see from the structure of the European economy based on family businesses that they are bought 'in bundles' by funds. It will be interesting to see how the European economy can bear it if this family character is destroyed,” he added.
(ISBnews)
