Indeed, sentiment has changed notably over the past six months. A general sense of optimism over the outlook for the world economy, or at least a feeling of being over the worst of the global slowdown, has rapidly disintegrated. Central banks’ focus has now switched from inflation to growth. In the UK, for example, the Monetary Policy Committee has announced another round of quantitative easing, whilst the ECB has reversed its earlier interest rate rises. Elsewhere, other countries in Europe and Asia have paused in their cycle of raising interest rates, despite inflation still being well above target in most countries.
Source : PRUPIM