Investments  

Forward guidance is facing new challenges

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Europe - May 2014

It is expected the Fed will draw its asset-purchase policy to a close before the end of this year, with the first rise in US policy interest rates coming by mid-2015. The Bank of England looks to be on a similar rate-raising timetable, with the European Central Bank and Bank of Japan some way behind. We may not be ‘normal’ yet, but we are slowly getting there.

Lucy O’Carroll is economist at Aberdeen Asset Management

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