Revera's Nimmo: No need for policy nerves

As Western economies move closer to the inevitable monetary policy normalisation, nervousness is building. But the impact of these changes will be more muted than in previous cycles. Revera's Glen Nimmo explains why.

Weaning off QE Last summer, when initial fears over the impact of QE tapering in the US caused a sell off in equities and emerging market currencies, we likened the relationship between central banks and markets to that of parents trying to determine the appropriate dispensation of Calpol to an upset child. Yes, the parent (central bank) knows that the child (markets) wants the medicine (QE), but frets over whether it is really necessary (the ailment is now over), and fears its continued use will lead to much more serious problems down the line. Since then, central bankers have don...