Economic and financial risk insights - Central banks back in easing mode

After robust 1Q19 macro figures, global growth is set to weaken again while inflation remains moderate. Some of the major central banks are back in easing mode. We expect both the Fed and the ECB to cut rates. Long bond yields are unlikely to rise much from current levels. Risks to the outlook are skewed to the downside, with further escalation of the trade war our #1 risk – despite the recent US-China rapprochement.