10
Apr
End of global QE and support for rate markets
Normalisation of US monetary policy is intensifying. Some correlation on rate markets once again. Commodities and employment are propping up inflation.
Key points
- 2017 will mark the end of global quantitative easing
- Normalisation of monetary policy is confirmed with the Fed’s 3rd rate rise
- Next steps: the ECB, BoJ, and PBOC will reduce liquidity injections
- Inflation, propped up by commodities and employment, should not be under-estimated in 2017
- United States: the fall in the jobless rate to 4.5% will spark a rise in domestic inflation
- Eurozone: the ECB will not hold back interest rate rises in the long term
- United Kingdom: insufficient yield
- Japan: still uninspiring
- Emerging markets: current rates are providing some protection against the risk of capital losses
