Economies intervened by the Central Banks

Investor attentive to the volatility (Photo: Mercado.com)

The current excessive volatility markets seem to have a moment of tranquility to any global economy. The march of the Chinese economy and its linkages with the current global Multieconomía, does indicate that sensitivity to volatility is higher than expected in the recovery scenario is handled in all American and European countries.

May show signs of cooling economies depends on several factors according to UBS Bank report written by its CEO. These factors are business confidence, the sharp rise in credit spreads or economic data that we have observed in Q3 2015 have been disappointing.

Great news is that central banks still have a lot to say and a lot of capacity to intervene in markets to propose to the countries economic adjustments. Central banks have more power to act in the context of low inflation. China may still cut its official interest rate per annum, facilitating debt servicing and reducing reserve requirements, which extends the ability of banks to lend. In Europe, Draghi said that the ECB program could be extended, both in "size, composition and duration." In US Yellen has the flexibility to keep rates low, if considered appropriate by the Federal Reserve.

All this suggests that the central banks are going to take world's most important economies in order to control.

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