Economic Take: Monetary Policy, Interest Rates and Liquidity

Week ending 22nd March 2019
Pervasive and systemic risks stemming from the global economic downturn has contributed to a shift to easier monetary policy either in the form of delayed normalization or outright policy rate cuts. It was therefore no surprise when the US Federal Reserve and UK monetary policy committee (MPC) committed to keeping their policy rates unchanged. While this shift relieves pressure off many emerging and developing economies, their respective central banks remain cautious of evolving global trends and the possible impact of contrarian monetary policy.

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