The main challenge of monetary policy in the past was to contain high and volatile inflation. Policy makers rose to the challenge and brought inflation under control in many parts of the world, including emerging market economies with histories of very high inflation.
The current challenge for central banks is quite different. Inflation and interest rates are very low in all advanced economies, which poses a new challenge to policy makers: how to respond to the next slowdown or recession.
While a global recession is not the baseline consensus view at the moment, despite rising risks, it is essential to discuss and prepare policy options well in advance.
November was a broadly positive month for bond markets as yields rallied into month end. Read our latest thoughts on how fixed income markets performed during the month and what we think you should be looking out for in the near term.
Catch up on monthly fixed income insights from our emerging market local debt team.
In our regularly updated macroeconomic analysis we offer an outlook for interest rates and currencies – and look at which fixed income assets are favoured across a range of market environments.
