Low interest rates will limit the ability of central banks to cut rates further if the economy turns pear-shaped. We examine the other options available in developed markets.
Although the US Federal Reserve kept rates unchanged this month, the direction of travel is towards easier policy. Whether this will be enough to restore corporate confidence and spending may depend as much on the president as the Fed.
The Reserve Bank of Australia has cut rates in response to a labour market that has lost momentum, and amid concerns over household consumption and China’s trade dispute.