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
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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.
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