A Steepening Global Yield Curve Supports Growth

The UK joined this year’s global rate hike party by raising its Bank Rate a quarter point last week. Australia also hiked—the fifth this year. These moves add to others in Europe, Japan and North America, leading many to expect worsening credit conditions. We see these hikes as mistakes outside Japan. But the global yield curve remains steep enough to support lending anyway—a key consideration when weighing monetary policy moves. Read Full Article »