Introduction


In 2015, the divergence in monetary policy among the world's central banks is expected to be a key theme. For now, the scorecard seems to be tilted toward monetary easing. In January 2015, fourteen central banks engaged in some form of monetary policy loosening, generally in the form of interest rate cuts or asset purchases.
Fig 1: Central banks actions calendar 2015.
Some of actions included Denmark's central bank aggressive slashing of interest rates four times in a three-week period and the European Central Bank (ECB) announced plans to step up its quantitative easing. Canada cut the benchmark interest by 25 basis points to 0.75% whilst the Reserve bank of Australia RBA followed with a similar 25 basis point cut to 2.25% in its February 2015 meeting.
Having witnessed all the action from across the globe the investing public anxiously awaits the next move from the US Federal Reserve (Fed), having ended the quantitative easing program in October 2014. This article looks at the state of monetary policy in the United States.
January 28, 2015 monetary policy statement
Having announced the end on the quantitative e…
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