We have scaled back our forecasts for rate hikes in the US, but still expect the Fed to raise interest rates further than is priced in by financial markets during the coming two years. At the same time, a lot more central banks are likely to reduce interest rates and/or ramp up their asset purchase programmes .Indeed, we forecast eleven of the twenty central banks covered in this publication to ease policy further by the end of this year. Global monetary conditions will therefore be even more accommodative than they are today.
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