News & Insights

Global activity has remained decent, in the context of still accommodative monetary policy settings in developed economies. In the US, growth expectations remain robust, the labour market tight and the Fed is still tightening. The European economy remains well supported, with the Eurozone continuing to benefit from very accommodative monetary policy. Brexit fears have negatively affected the pound, and the BOE could be hiking rates there in the near future. Indicators are that the Chinese economy will continue to slow, albeit in a moderate fashion over the medium term. The fixed investment slowdown that authorities were able to reverse in 2016 is likely to resume, weighing on growth in that economy going forward.