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,
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