Negative policy rates have come under attack in recent months, but most of the criticisms look overdone. We still think Japan will cut its policy rate further in June or July, while also stepping up its asset purchases. But those European central banks which have already cut rates further below zero will probably rely more on QE and exchange rate intervention to boost their economies. More generally, we expect ten of the twenty central banks covered in this publication to ease policy further this year. The Fed, however, is likely to raise rates at least twice over that period, beginning in June. And the People’s Bank of China will probably leave policy broadly unchanged, as growth appears to be picking up.
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