Capital Markets: Observations & Insights

V

Global Easing Economic Outlook

• Central banks loosened monetary policy in 2019, which should increase activity in 2020

I

‒ Interest rate sensitive areas of the economy such as housing are already getting a boost

II

Global Monetary Policy Tracker

10

8

Tightening

6

III

4

2

Global tightening has given way to global easing

0

IV

-2

-4

(Easing) Index

-6

Easing

Net Global Tightening /

-8

V

-10

2015

2016

2017

2018

2019

2020

VI

Source: Council on Foreign Relations. Global Monetary Policy Tracker compiles data from 54 countries to highlight significant global trends in monetary policy. The index ranges from -10, which indicates that all countries are easing, to 10, which indicates that all are tightening. Index weighted by share of global foreign exchange reserves.

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