The markets have been keeping a close watch on central banks across the globe, monitoring their policy decisions and reacting accordingly. Looking forward to 2024, we think the tried-and-tested Taylor rule — a useful tool for an understanding of the drivers of monetary policy — could offer hints on the dynamics that lie ahead in monetary policy land.
Highlights:
- Global economy negatively impacted by monetary tightening, but inflationary pressures expected to dissipate.
- Taylor rule framework indicates it's time for central banks to act on monetary easing, but markets look like they overestimate speed and number of cuts.
- Equity investors increasingly comfortable with a 2024 soft landing and multiple rate cuts, driving bullish stock market momentum.
Your Monthly Macro & Strategy is also on the iA Global Asset Management website.
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Your experts
Sébastien Mc Mahon, MA, PRM, CFA
Adil Mahroug, M.Sc.
Tuyen Tran, M.Sc., CFA |
"iAGAM" is a tradename under which iA Global Asset Management Inc. and Industrial Alliance Investment Management Inc. operate.
