“Two: Monetary policy challenges. Falling and low inflation rates over the past 40 years were, among other reasons, the result of central banking having become less influenced by politics and globalization reducing the bargaining power of labor. In the face of persistently low inflation and central banks failing to meet their inflation target, there’s a risk that central bankers are blamed from all sides of the political spectrum—laying the ground for a repoliticization of monetary policy. Besides this, the challenge of how to exit QE [quantitative easing] in the context of a slowing global economy is becoming ever more daunting.
“As a consequence of these significant risks and uncertainties, we are taking a very cost-conscious approach to 2020 and beyond.”
This article was provided by Bloomberg News.