Fitch says global growth remains robust, but US inflation risks are rising

Author: Justin Low | Category: News

Comments by Fitch Ratings in its June global economic outlook report

  • Near-term global growth prospects remain robust despite rising trade tensions
  • A much sharper than anticipated pick-up in US inflation is a key risk to global outlook
  • Inflation shock in US could bring forward adjustments to global bond yields
  • That will sharply increase volatility and harm risk appetite
  • Still expects four rate hikes by Fed this year
  • Believes ECB will scale down QE between September to end of the year
  • Revises forecast of ECB rate hike to one in 2019 (two previously)
  • A December end-date for QE means rate hikes in Q3 or Q4 2019 for ECB
General commentary on the current global situation by Fitch. With all the spotlight on this week's set of events, it's a good reminder of the bigger picture that is shaping up beyond this what is happening this week.

Though their input on central banks may be subject to change come the end of the week once we have the Fed and ECB meetings out of the way today and tomorrow respectively.

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