The economic environment is becoming more challenging. Monetary policy is becoming more and more accommodative, as many central banks—both from advanced and emerging market economies—have been cutting policy rates aggressively to nearly all-time lows while others have embarked on quantitative easing to support their economies. To complicate matters, debt levels in many countries are constraining fiscal manoeuvres.
The fact is that there is lesser and lesser room for dodging the bullet in case of a global recession. Some are concerned that our policy rate, currently at 3.35 per cent, is at its alltime low. We are not alone in this low policy rate environment. This being said, there IS hope, ladies and gentlemen!