Tuesday, November 21, 2017 UTC
Analysis > Analysis and Strategy

Africa faces global quantitative tightening

Said DeSaque, CEO and Principal, DeSaque Macro Research
Oct. 17, 2017, 7:15 p.m.
357

Word count: 1211

Central banks in the developed world are contemplating an end to their dalliances with quantitative easing. Crucially, the US Federal Reserve announced its intention to commence balance sheet normalisation by ceasing to reinvest maturing principal of its bloated holdings of US Treasury securities and mortgage backed securities. Currently, the Fed’s balance sheet is 25% of US GDP. Normalisation will, therefore, require many years, but there will be important implications for the international cost of capital.

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