The latest communications from advanced economy central banks imply that they have shifted away from a normalisation path towards closely monitoring incoming data to ascertain whether additional policy stimulus might be needed. Here, we outline the data that each central bank is likely to watch most closely in the months ahead. We suspect that those data will support the case for interest rate cuts by the Federal Reserve next year. Meanwhile, the evidence before the ECB and the Bank of Japan is likely to convince them that, at the very least, the current ultra-loose policy stance should be sustained.
Become a client to read more
This is premium content that requires an active Capital Economics subscription to view.
Already have an account?
You may already have access to this premium content as part of a paid subscription.
Sign in to read the content in full or get details of how you can access it
Register for free
Sign up for a free account to:
- Unlock additional content
- Register for Capital Economics events
- Receive email updates and economist-curated newsletters
- Request a free trial of our services