In the past six months, more than one-third of the central banks have made huge shifting in their policy, stated by Fitch. The changes that have taken in the central bank’s monetary direction within six months that has shocked everyone for the very reason that no such dramatic shifting has occurred even in an entire decade lest a few months.
Fitch ratings examined the monetary directions and not the magnitude and concluded that the policies have been loosened up a lot. Fitch further continues to state that the central banks are involved from the United States to Turkey.
However, Norway and the Czech Republic have stayed out of the loop and rather are traveling in a whole new different trajectory. The central banks here have increased the interest rates in an incorrigible manner.
Fitch said that in December about 52% of the central banks were in monetary policy tightening situation while only 3% had touched the easing phase. The widespread shift in the policy of the central banks is an outcome of the deterioration in the prospects of global growth, a slump in global trade and manufacturing, and uncertainty of the trade policy in the future.