GLOBAL REFLATION SCENARIO ON TRACK Economists are increasingly confident that we are now in the midst of another phase of monetary easing. With global interest rates remaining at or near historically low levels, my view remains that the global reflation scenario is on track and easier credit policies from many of the world’s central banks, including the Federal Reserve, are coming and will be the dominant fundamental that supports U.S. stock index futures in the long term.


BANK OF CANADA The Bank of Canada at its most recent policy meeting said it has no plans to change its benchmark interest rate until inflation gets back to 2.0% and remains there, which is something it says is not likely to happen until 2023. The central bank decided to keep its key interest rate steady at 25 basis points. The BoC said although the economy is showing signs of recovering, the situation is still a long way from normal, so cheap lending rates will be necessary for a long while yet.


BANK OF ENGLAND


The Bank of England surprised with more quantitative easing. The increase in the size of the BoE’s asset-purchase program took it to 895 billion pounds, which is 50 billion pounds more than expected by many economists. The central bank said the purchases could be sped up if needed. The BoE kept its benchmark bank rate at 0.1% as expected.


24 | ADMISI - The Ghost In The Machine | Q4 Edition


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