We have scaled back our forecasts for rate hikes in the US, but still expect the Fed to raise interest rates further than is priced in by financial markets during the coming two years. At the same time, a lot more central banks are likely to reduce interest rates and/or ramp up their asset purchase programmes .Indeed, we forecast eleven of the twenty central banks covered in this publication to ease policy further by the end of this year. Global monetary conditions will therefore be even more accommodative than they are today.
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