Central banks have no rulebook for ending quantitative easing

London

REINVIGORATED economies are in evidence across much of the developed world. Growth is becoming more firmly established. Inflation is beginning to climb in the US, euro area and the UK.

After seven years of unorthodox operations, primarily quantitative easing (QE), central banks are beginning to consider when and how to normalise monetary policy. Mario Draghi, president of the European Central Bank (ECB), recently said that while the ECB's interest rates would stay unchanged, there was "no longer a sense of urgency for taking further actions" on monetary stimulus. On March 15 the US Federal Reserve fulfilled expectations by raising interest rates 25 basis points. Commentators are forecasting another two Fed increases in 2017.