Deeper global slowdown still more likely despite round of rate cuts: Reuters poll

A slowdown in global economic growth is still more likely than a synchronized recovery, even when many central banks are pursuing a loose monetary policy.

While the withdrawal from escalating trade tensions between the US and China has led stocks close to record highs, bonds are worth $ 17 trillion. dollars are negatively yielding, and the key market signal for a US recession is still flashing red.

"More central banks around the world, led by the Fed and the ECB, are cutting interest rates, and the fiscal stimulus seems inevitable," wrote Janet Henry, chief global economist at HSBC, in a note to clients.

Growth and inflation forecasts for most major economies appear to be at a steady pace or at best moving at historically modest rates, according to Reuters surveys conducted by more than 500 analysts around the world.

With respect to the central banks surveyed, the sentiment seems to continue to ease monetary policy next year. 71% of 177 economists say that slowing down the global economy is the more likely scenario.

This view has turned dramatically over six months ago, when economists were almost divided over what was more likely. The optimism shared by many analysts that trade tensions between the US and China will cool seems to have evaporated.\

Sourse Reuters

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