Gold will extend declines this year as gains in equity markets reduce the need for haven assets and increased regulation hurts risk appetite, according to Morgan Stanley, which lowered its bullion forecasts.
The International Monetary Fund raised its forecast for global growth this year as expansions in the U.S. and U.K. accelerate, and urged advanced economies to maintain monetary accommodation to strengthen the recovery.
The International Monetary Fund raised its U.K. growth forecast by more than any other Group of Seven economy, strengthening Chancellor of the Exchequer George Osborne’s argument that his austerity plan is working.
U.S. economic growth will accelerate this year even as the pace of expansion remains sub-par almost five years after the end of the recession, according to academic economists and former policy makers.
A U.S. government default would “almost surely” derail the nation’s economic recovery and lead to potentially major market disruptions worldwide, said Olivier Blanchard, chief economist of the International Monetary Fund.
The Federal Reserve’s stimulus boost has made carry trades more attractive and may raise capital flows to emerging economies and weaken the dollar, International Monetary Fund Chief Economist Olivier Blanchard said.
International Monetary Fund Chief Economist Olivier Blanchard said today that there was a need for a “dramatic change” in Japan’s monetary policy to generate positive inflation and that the monetary policy followed by the Bank of Japan is “appropriate.”