Central bank policy changes the entire paradigm of trade and economic relations that have existed for several thousand years. At the moment, politicians dictate the conditions and they benefit from the measures introduced. This is what the financial analyst Pavel Bandilov said on the air of Boom&Bust on Bloomberg TV Bulgaria.
He commented on the risk of declining income for pension companies and insurance companies.
In his words, the Fed does not have much choice and will continue to look for ways to explain that it will not raise interest rates at the initial rate announced. The expert expressed expectations to see an increase in interest rates this year.
I am skeptical that cheap liquidity will revive the Bulgarian capital market. We have been quite behind in judicial reform and the elementary things that we have had to solve over the years. The problems with private property continue. There’s no way we can attract investors in this environment.
Bandilov said privatisation on the stock exchange would have a positive effect, but for the moment judicial reform is the most important. He also stressed that society should be more critical of the government.
Look at the whole conversation in the video:
