It’s not only the Fed that is cutting rates and recalibrating monetary policy. Central banks around the globe are, for the most part, dovish as well, as you can see in the table below. India, Brazil and Russia are notable exceptions to the norm. Interestingly, they are members of the BRIC block, being China the missing one. You can see also the inflation rates all the central banks in the table are trying to control. Most of them start with a “2”, which is considered price stability. This is important because inflation is subject to global factors, and there’s some degree of sync among central banks to abate those factors. There are two dissonant notes in this chart: Japan, which still has inflation above 3% and probably would like to keep it that way, and China, which is too close to deflation (0.6%) as it reforms its real estate sector. This cycle is global.
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