State of Play – When less is more
Central banks’ tinkering with monetary policy and frequent u-turns are seemingly doing more harm than good. The Fed and the Bank of England have provided little clear forward guidance and the Bank of Japan’s move into negative rates only had a passing positive impact. While safe-haven flows may continue to appreciate the yen, a less competitive currency is likely to ultimately weigh on the economy and in turn the yen. In contrast the Korean won looks reasonably attractive at these levels. Read more