Trump’s address to Congress was light on detail but his job creation plans pose inflationary risk, and Fed officials are already taking a more hawkish tone.
Although it is good news that latest GDP data has surpassed expectations, it might imply that the demonetisation policy has been a failure.
Japan may appear less exposed than some other countries to US trade risks but it would still be affected by anti-globalisation measures.
Economic & Strategy Viewpoint
This month our economists focus on the inflationary headwind to the global recovery, become cautiously more optimistic on Europe, and explain their more positive view on emerging markets.
In this month's economic infographic we illustrate the threat to global growth posed by rising inflation and Trump's "America first" policies, as well as political risk in Europe.
The Indian central bank’s decision to hold rates at 6.25% confounded market expectations of a cut, but was in line with our view following what seems like only a limited impact of demonetisation on growth.