More Monetary Policy Easing Expected Around the World

By Unknown

Selasa, 26 Juli 2016

More Monetary Policy Easing Expected Around the World

The global interest rates are likely to go even lower before they board the volatility of financial markets and the specter of deflation raise new doubts about the central banks' ability to fulfill their mandates, policy makers and economists said.

With markets in turmoil and talk of a new Chinese currency devaluation increased, expectations for higher US rates this year have all but evaporated and central banks from Europe to Canada and the Australia are preparing the ground for more easing.

Faltering emerging market growth exacerbates concerns, increasing the risk that the easing in too many places at once will itself cancel and force domestic banks in a vicious circle of competitive devaluation currency.

"the greatest risk to the world economy at this stage is an aggressive policy of devaluation in China," said the head of a major central bank in Europe, who asked not to be appointed.

"with the uncertainty and the already high volatility, it would have great consequences for all economies."

the PBOC has struggled to keep the yuan steady since January 6 at its second sharp depreciation in six months has sparked fears of further devaluation that growth in the world's second largest economy, already at a low of 25, slows down.

via Reuters

[ad_2]
Read More: More Monetary Policy Easing Expected Around the World

Share :

Facebook Twitter Google+