Vanguard economic and market update
27 August 2020 | Markets and Economy
Vanguard's key points:
- The initial stages of recovery from the Covid-19 pandemic in the US, Europe and Asia have been slightly faster than anticipated.
- However, we expect the pace of recovery to slow later in the year, meaning monetary policy should remain loose well into 2021.
- Inflation is picking up, but we don’t expect this to be the start of a meaningful trend.
- Trade has bounced off its lows, with our index of leading indicators increasing for a third consecutive month.
These points represent the house view of the Investment Strategy Group’s (ISG’s) global economics team and other experts as of 18 August 2020.
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