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Trade spat will not deflect Fed (or BoE) from hiking

We expect the Fed to raise interest rates three more times this year, and twice in 2019, but we think it will then begin to loosen policy in 2020. Other than the Bank of England, most major central banks will lag a long way behind the Fed in raising rates and the Bank of Japan is likely to leave rates on hold for the foreseeable future. Meanwhile, central banks in some emerging economies are set to raise rates this year, but several, including the People’s Bank of China, are more likely to loosen policy.

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