Increasing risks of economic and market volatility, worsening outlook and central bank policy shifts

August 26, 2024, 6:42 PM GMT+9 (excerpt)

At this year's International Economic Symposium, the Jackson Hole Conference, the discussion was focused on the signs of economic slowdown and worsening labor market risks, and attention was drawn to the future of monetary policy.
While the central banks of the US and Europe are steering towards interest rate cuts, the Bank of Japan has reaffirmed its policy of easing monetary policy and there is a risk that the global economy and international financial markets will continue to experience intense volatility against the backdrop of this divergence in monetary policy and the continued slowdown in the Chinese economy.
This month, US employment statistics fell below expectations, raising concerns about a recession. In July, the Bank of Japan surprised the market with interest rate hikes, causing confusion.
So far, many analysts support the International Monetary Fund's (IMF) forecast that the global economy will continue to grow slowly over the next few years. According to the IMF, the US economy is expected to achieve a soft landing, European economic growth is improving, and there are expectations that the Chinese economy will recover from its downturn.