What's the monetary outlook for US, Japan and Europe?

SINGAPORE (July 28): “Near-term risks to the economic outlook have diminished,” this was the key message in the latest policy statement from the US Federal Reserve, according to OCBC Chief Economist Richard Jerram in his Thursday research report.

Jerram says this suggests that an interest rate hike is imminent, likely before the close of the year. In his report, Jerram presents three key themes on monetary policy in the United States, Japan and Britain.

1. A positive Fed points to a 2016 rate hike
The strong job growth figures in June have led the Fed to take a slightly more positive view on the current state of the economy. In addition, the Fed also appears to be of the view that Brexit’s spillover effects will not disrupt the US recovery.

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