Still further to go: Long road back to monetary normality

Central bank concerns

Caution remains the default option for central banks.

With a backdrop of multiple variables and market noise it is difficult to predict what will happen in the next few quarters - let alone over the central banks' forecast horizon.  A lack of conviction and the interplay of international risks, along with fears of spooking financial markets, all combine to restrain major central banks from making bold moves.  Following the slew of disappointing data in Europe - largely blamed on the "Beast from the East" weather phenomenon - the Bank of England and the European Central Bank (ECB) are both in "wait-and-see" mode. In the UK, after the d...