There has been a clear change in tone from some of the world’s most important central banks.
The US Federal Reserve is lifting rates, the ECB is more upbeat on the outlook — as is the Bank of England — and this week, the Bank of Canada lifted rates as expected but surprised markets with the optimism in its outlook.
Having come through the loose monetary policy settings and the era of QE, it appears the global economy has reached a turning point. This is good news for Australia, notwithstanding the significant challenges that remain domestically on unemployment and low inflation.
To discuss it all we’re joined on this week’s episode of our economics podcast Devils and Details by Elias Haddad, senior currency strategist at the Commonwealth Bank. Haddad explains the reasoning for the more hawkish noises we are hearing from central bankers, and we also look at the outlook for Australia.
We also look quickly at crytocurrencies, especially Ethereum, which has seen some insane price action lately.
You can find the show on iTunes or listen in below. Enjoy!