What usually matters most to markets about central banks is not so much where they are, as where they are headed.

A quick scour of major central banks around the developed world reveals similarly subdued interest rate levels: 0.1% in Japan, 0.05% in the eurozone, 0.25% in the UK and 0.5% in the US. Yet while they may all be huddled at a similar point on the interest rate spectrum, central bankers are facing in very different directions. The Bank of England recently indicated that its rate freeze may endure until 2017, while minutes released last week showed that the European Central Bank had considered introducing easing measures back in October.

This week's bulletin also includes:

  • The Federal Reserve continued to indicate a December rate rise was likely
  • The ECB pointed in the opposite direction, with easing expected in a fortnight
  • Japan entered technical recession, although the reality is less alarmingM
  • The IMF recommended that China's currency enter its basket of global reserve currencies

View this week's Market Bulletin, which contains thoughts and opinions of St. James's Place and our range of investment managers on the key issues affecting investors.

Most computers will open PDF documents automatically, but you may need to download Adobe Reader.

distributed by