In a recently published report, Fitch Ratings said that after raising interest rates four times in 2018, the Federal Reserve is expected to leave the policy rate unchanged in 2019.
Key takeaways (via Reuters)
- Trade war causing collateral damage to global economic outlook.
- Even though our base case assumes that further U.S. tariffs on China are avoided, our world growth forecast for 2020 has been lowered.
- Trade war is weighing on investment prospects and has sharply increased downside risks to world economic growth forecasts.
- Central bank responses will not fully compensate for impact of rising trade uncertainties.
- For other EM, trade concerns are also impeding benefits of looser global monetary conditions on capital inflows.
- On ongoing trade war, says while eurozone looks likely to avoid recession, growth outlook remains weak.
- World growth is expected to fall to 2.8% this year from 3.2% in 2018.
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