The increased global risk and moderate inflation forced the FED to change its rhetoric regarding monetary policy's further tightening. Fed Powell emphasized that ‘’soft’’ inflation gives time in analyzing the data deeper. The market probability changed from 4 hikes to 2 through 2019.

The ECB said that growth is slowing but remains at 1.5% in the Euro area and interest rate will remain low respectively. In addition, the ECB's future decisions will be based on economic data. According to ECB's Lautenshlanger, the interest rate hike policy will depend on next quarter's inflation data.

The BOE remains neutral due to the current Brexit matter. President Carney said that the Central Bank will be prudent but not passive meaning that whatever the Brexit outcome might be the monetary policy is still on track.


1. USA 2.5%
2. EUROZONE 2.5%
3. UK 1.6%

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Christos Nikolaou

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