Poll suggests global tightening cycle over ahead of U.S. and UK rates decisions

Credit: Reuters Studio
Published on April 29, 2019 - Duration: 01:25s

Poll suggests global tightening cycle over ahead of U.S. and UK rates decisions

Major central banks are done tightening policy, according to a majority of economists polled by Reuters, with the growth outlook wilting across developed and emerging economies along with scant prospects for a surge in inflation.

As Edward Baran reports, the poll comes ahead of policy meetings at the Federal Reserve and the Bank of England later this week.

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Poll suggests global tightening cycle over ahead of U.S. and UK rates decisions

Major central banks are done tightening policy, according to a majority of economists polled by Reuters, -- With the growth outlook wilting across developed and emerging economies Central banks have been hinting at a move away from hiking interest rates, and nearly 60 percent of more than 200 economists said they were confident the global tightening cycle was over.

On Thursday, the Bank of Japan dispelled any doubt about its commitment to ultra-loose policies.

Their pledge - to keep rates at rock bottom for a previously unspecified minimum period of a year.

Sweden's central bank said a forecast interest rate hike would come slightly later than it had planned.

The US economy is in rude health with the dollar at two year highs... The International Monetary Fund sees U.S. growth at 2.3 percent this year.

It's given rise to some speculation the Fed might resume raising interest rates.

But such a pivot is seen as unlikely when the US central bank announces its policy decision this Wednesday ... After the Fed killed off rate-rise expectations at its March meeting.

And in the UK Sterling is in the doldrums amid the Brexit delay Expectations for an interest rate increase at the Bank of England - which meets on Thursday - have been whittled down Reuters polls forecast rates will not move until early 2020.

The hunt for a new governor to replace Carney in October adds more uncertainty to the mix.

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