Economic and financial risk insights - Global monetary liquidity tap opened (again)

With 2Q19 GDP figures trickling in, our view of sluggish global growth and subdued inflation remains fully intact. Although the Fed emphasised that its rate-cut decision was an adjustment rather than a starting point of another easing cycle, it confirms our view that major central banks are in full easing bias. Long-term bond yields are likely to remain at their current levels. With further escalation of the trade war, amid rising risk of no deal Brexit in Europe, the outlook of global economy is skewed to the downside.