Central Banks: Mind the Divergence

The global economy is slowing, following a synchronized cyclical upswing in 2018 driven by a procyclical U.S. fiscal stimulus. Since then, a trade war between the U.S. and China has stalled global momentum, with global PMIs bearing the brunt, businesses postponing investment decisions and Central Banks easing monetary policy as a result. Despite their best attempts to sustain the expansion, Brexit’s twists and turns have caused uncertainty to persist, adding to Eurozone and global woes.