Global Economics

Global Central Bank Watch

30 August, 2013

Monetary conditions to stay loose despite Fed tapering

We expect the Fed to begin to scale back its monetary stimulus in September, but the tapering process will be slow and US interest rates will remain low for an extended period. Moreover, central banks in other advanced economies are likely to loosen monetary policy further. Overall monetary conditions in advanced economies will therefore remain highly accommodative for at least the next year or two.

 

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