The fog thickens

Central banks are trying to stay the course in a world where many of the usual reference points have been turned upside down. The ECB has opted to cut its key rates once again, highlighting the risks to growth and hence inflation posed by the unpredictability of US economic policy. The Fed, whose country is facing different but no less harmful consequences, seems to be leaning towards the status quo, for now at least. To be continued… And it has to be said the signals being sent out by international institutions, notably the WTO and the IMF, are hardly reassuring in terms of growth, inflation and world trade. Even if the main leaders of the world’s economies and international institutions have not lost their bearings, this is of little help in navigating through the fog...