Monday, 13 June 2016

Caution Pervades at Four of World's top Central Banks

It is a sign of the caution that permeates the global economic outlook when four of the world's top central banks, all due to meet within days of each other, are almost unanimously expected to make no change to their extraordinary stimulus programs. 

While the US Federal Reserve, Bank of England, Swiss National Bank and the Bank of Japan are all dealing with varying amounts or shortages of inflation, none are expected to act ahead of one of the biggest risk events of 2016. 

Britain's referendum on whether to remain in or leave the European Union has been creeping from the back to the front of investors' minds. During the last full week of campaigning before the June 23 vote, it may dominate most discussion. 

Janet Yellen's Fed has spent most of the past month or so dropping hints that a summer rate hike was on the way.

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