There was further evidence over the past month that the world is experiencing a steady recovery, led by stronger growth in many advanced economies. Admittedly, the global business surveys for September dropped a little compared to August, but they are still consistent with a decent global growth rate. What’s more, there is little reason to fear a rise in inflation. Consequently, the world’s major central banks look set to persist with ultra-loose monetary policy for a long time to come. Provided US politicians avoid shooting themselves in the foot over the federal government debt ceiling, the outlook therefore looks reasonably encouraging – with the important caveats that the euro-zone is still lagging behind and that the larger emerging economies are not as dynamic as they were.
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