Skip to main content

Fed to begin reversing QE and ECB to set out taper plans

The US Fed is still on track to start shrinking its balance sheet in the coming month or two, and we think it will raise rates again in December. Meanwhile, the ECB will probably announce in October that it will wind down its asset purchases during 2018, but we do not expect it to begin raising rates until 2019. And the Bank of England will probably begin to increase interest rates around the second quarter of next year. This would leave the Bank of Japan as the only major advanced-economy central bank with its current policies unchanged.

Become a client to read more

This is premium content that requires an active Capital Economics subscription to view.

Already have an account?

You may already have access to this premium content as part of a paid subscription.

Sign in to read the content in full or get details of how you can access it

Register for free

Sign up for a free account to gain:

  • Unlock additional content
  • Register for Capital Economics events
  • Receive email updates and economist-curated newsletters
  • Request a free trial of our services


Get access