The latest edition of RBC Economics Research’s “Financial Markets Monthly” with updated financial market forecasts……
Highlights from this month’s Financial Markets Monthly:
• Oil price decline roiled financial markets resulting in a sharply lower government bond yields; we have adjusted our interest rate forecasts to take this into account.
• Economic data are diverging with the US powering along while Europe stays weak.
• Fed likely to raise funds target mid-year, with lower energy costs being simulative for growth.
• Bank of Canada views the energy price decline as putting a "weight" on economic activity with a more fulsome assessment expected in the upcoming Monetary Policy Report.
• ECB is expected to announce a broadening out of its asset purchase program keeping its aim on supporting growth and heading off deflation.
Link to “Financial Markets Monthly”
To view and download the new report, click on the following link: