Macro Weekly – Are policymakers doing enough?

The global economy continued to slow at the turn of the year and the weakness is likely to persist for a while longer. We are seeing a reaction from central banks around the world to the slowdown in economic growth. Financial conditions have eased and, perhaps helped by some lifting of policy uncertainty, momentum will improve later in the year. We doubt economic growth will improve sharply given that the actions by central banks have been relatively modest so far. The improvement in financial conditions will take time to feed through into demand.