Easing Monetary Policy Alone May Not Sufficiently Boost Clean-Energy Investment

Experts warn that the Fed’s decision to finally ease its monetary policy after several months of consecutive interest rate hikes may not be enough to offer a sufficient boost to clean-energy investment. The U.S. Federal Reserve began its easing cycle by cutting benchmark interest rates by 50 basis points last week, a move that was swiftly followed by central banks in Canada and several European nations.

With countries such as Sweden, Switzerland and England, among many others, also easing their monetary policy, and some expected to speed up the pace, the inflationary environment triggered by the coronavirus pandemic is mostly behind us. Inflation levels have generally fallen to target ranges, and…

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