A U-turn in central bank policy, plus falling government bond yields has helped provide protection for the global economy from the escalating U.S./China trade war during the summer. However, central bankers in advanced economies are not yet ready to take the next steps and cut interest rates aggressively and relaunch QE. This increases the risks around the world economy in 2020 and around overvalued riskier financial markets. Our latest Outlook looks at the economic impact of these major forces.
The September Outlook will also look at how U.S./China and Eurozone policymakers will try to mitigate the effects of the slowing world economy. We are concerned that Eurozone and Japanese policymakers have only modest policy space that they are willing to use.
What will all this mean for our economic policy and financial market forecasts?
To hear our latest 2019 and 2020 views, please join our Outlook Webinar on September 26.