Global concern as US annual growth dips

The outlook for global interest rates is very much dependent on the US economic outlook. Annual growth in the world's largest economy has deteriorated from around 3% to something close to 2% as residential construction has slowed very sharply. As we know, this has extended to concerns over mortgage quality and is something we must monitor very carefully. Some commentators have suggested that this could prompt a wider financial shock. For the moment, it is clear to us that the slowdown in growth comes at a time when US inflation is probably close to a peak. As a result, US nominal GDP grow...