Central banks at the core of financial markets

Central banks reiterated their concerns about GDP growth, but stock markets took heart from their dovish tone. The Bank of Japan will put in place a new monetary framework “QQE with Yield Curve Control”, to achieve the price stability target of 2%. The European Central Bank could eventually take the same approach as well.

US: Consumer spending should lose steam

Consumer spending could continue to grow in 2017, albeit at a slower pace. Household disposable income is likely to be buoyed by wage growth, which should outpace inflation. Our forecasts could be revised after the results of the presidential election.