The Fed, forecasts and finance

Financial market sentiment has improved in recent days, partly thanks to the Fed’s decision this week to leave interest rates on hold. Although this decision was largely expected, recent data from the US as well as from Europe have additionally bolstered the belief that a global tightening cycle may be near its end. In our charts this week we home in on this and other themes. Specifically we examine:

·       The consensus for central bank policy rates

·       The tightening of US financial conditions

·       The BOJ’s monetary policy dilemma

·       Ebbing inflationary pressures in the euro area

·       Mutual fund flows in Asia

·       Credit card activity in Israel