The world’s central bankers and a plethora of economists will gather at Jackson Hole, Wyoming, USA, for an annual get together with the topic this year, “Fostering a Dynamic Global Economy”. While that is an important topic as the world continues to lurch unevenly from the global crisis which started 10 years ago, the market will be looking at the speeches and discussion for clues on monetary policy settings.
Of the major advances economies represented at Jackson Hole, only two have started a monetary policy tightening cycle – the US and rather controversially, Canada. In the Euro area, Japan, UK, Switzerland, Sweden, New Zealand and Australia, the most recent monetary policy action has been to ease rates and it is by no means clear what direction or when the next move in these countries will be.
