No punch bowl. But central banks want the world to party on
Leisurely approach towards tighter monetary stance could result in another year of synchronised global growth in 2018
Washington
CENTRAL bankers are gingerly trying to take away the punch bowl without interrupting the party. Led by interest-rate increases by the Federal Reserve and the People's Bank of China, central banks around the world shifted towards a tighter monetary stance this week. Yet, the moves were either so well-telegraphed, or so tiny, and the language about future action so hedged, that there was barely a ripple in financial markets.
"They're terrified of upsetting the markets," said Paul Mortimer-Lee, chief market economist at BNP Paribas. So "they're all exiting quite slowly from emergency settings" on monetary policy.
The likely result of this leisurely approach: another year of synchronised global growth in 2018. Indeed, both the Fed and the European Central Bank (ECB) revised up their forecasts for the growth of their respective economies next year even as they signall…
BT is now on Telegram!
For daily updates on weekdays and specially selected content for the weekend. Subscribe to t.me/BizTimes
International
Luxury sector outlook clouded by China’s slow recovery
TikTok CEO expects to defeat US restrictions: ‘We aren’t going anywhere’
TikTok artists and advertisers to stay with app until ‘door slams shut’
Biden signs Ukraine aid, TikTok ban Bills after Republican battle
UAE announces US$544 million for rain repairs, says lessons 'learned'
HSBC says growing Chinese wealth fuels client investments in US