Business Standard

The end of cheap money

Odds are global economy as well as markets will handle rise in interest rates and end of QE, but the bull-run will surely end

Illustration by Ajay Mohanty
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Illustration by Ajay Mohanty

Akash Prakash
We are finally seeing the end of the cycle of cheap money and unconventional monetary policy. The US has already started raising rates, and is about to embark on the long unwinding of quantitative easing (QE), via a shrinking of the Fed’s balance sheet. Interest rates in the UK will rise before year end and the European Central Bank will begin tapering its own QE program any day now. Only in Japan will the central bank continue adding stimulus. Global QE or asset purchases will end (all central banks taken together) on a net basis by Q4 2018.

At first thought,
Disclaimer: These are personal views of the writer. They do not necessarily reflect the opinion of www.business-standard.com or the Business Standard newspaper

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