SWIP: Central banks still face challenges as recovery continues

SOAPBOX

clock

Lucy O'Carroll, chief economist at SWIP, takes a look at the challenges faced by central banks in light of a steady global recovery.

Forward guidance is all the rage among central banks. The Bank of England (BoE) and European Central Bank (ECB) have joined the US Federal Reserve in an attempt to influence expectations about the future pace of stimulus withdrawal. All three are essentially trying to do two things. Firstly, they are aiming to convince markets that policy will remain loose for some time. Secondly, they are trying to reduce the risk of a sharp correction in bond markets, which may be uncertain about the timing and impact of this new policy phase. For the BoE, this marks a significant change in the w...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Economics / Markets

2025 investment trends: The updated reality in wealth management

2025 investment trends: The updated reality in wealth management

'The future of wealth management will lie in personalisation'

Julia Khandoshko
clock 16 January 2025 • 4 min read
UK inflation lowers to 2.5% in December

UK inflation lowers to 2.5% in December

Down from 2.6% in November

Sorin Dojan
clock 15 January 2025 • 2 min read
'It's a challenging time': Advisers react to record gilt yield rises

'It's a challenging time': Advisers react to record gilt yield rises

Clients worried about a weakening UK economy

Isabel Baxter
clock 13 January 2025 • 5 min read