Leaviss: Rates may be low for another year

With sovereign and political issues taking centre stage recently, macroeconomic indicators have taken a back-seat

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With sovereign and political issues taking centre stage in markets recently, macroeconomic indicators have taken a back-seat in many market participants' minds. But how have the advanced economies been recovering, absent these risks?

Today I'd like to focus on some research on labour markets that was recently published by the International Monetary Fund (IMF) in their World Economic Outlook and the implications this might have on central bank interest rates. Unemployment is a big problem at the moment and is a key challenge for policymakers globally. Strong labour markets generally result in higher consumption and wealth effects, generating higher standards of living and stronger GDP growth. Given this context, the IMF has sensibly asked: how long before employment recovers? Sadly the employment reports to come ou...

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