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Where next for central banks?
There has been a slight sense of loss of momentum in 1Q18, partly weather-related and partly sentiment driven due to protectionist concerns, but on balance we remain upbeat on the US economy’s prospects. Domestic demand is strong, supported by a firm jobs market, rising house prices and an expansionary fiscal policy driven primarily by significant tax cuts. At the same time, the US dollar’s depreciation means exporters are in a competitive position to benefit from the upturn in the global economy. Meanwhile, consumer price inflation is broadly in line with the Federal Reserve’s 2% target. Given the tight labour ... (full story)