As we usher in the New Year, it’s worth taking a moment to see how this year’s major business themes have played out. While smatterings of growth and dips in unemployment have brought relative stability to Europe and the US, analysts at Nomura foresee policy changes that may reshape global prosperity in the long-term.
The global financial spotlight is focused squarely on China with its economy and banking system beginning to show signs of weakness. Interest rates hit all-time highs, while the central bank stood by and watched, as Reuters reports.
The People’s Bank of China has engineered a tightening of cash in money markets after seeing interest rates spike to 25 percent or higher for some deals. This was done in order to try to rein in excessive credit growth, especially in the lightly-regulated “shadow banking” sector.