World: Monetary policy eases further

- "Global growth will moderate in 2011. Emerging Asia will remain the driver. With inflation on the whole still tame and, especially, with developed economies slowing, the major Asian central banks are probably not being reckless in giving monetary policy a further expansionary turn."
- "With the U.S. economy halfway back to its previous peak, cyclical forces are fading. A fog of uncertainty about next year’s tax rates is modifying the behaviour of households and businesses. The U.S. is entering a slow-growth trap, with real growth unlikely to exceed 2% annualized in the second half of 2010."
- "The Canadian recovery has reached maturity. Real GDP, employment and domestic demand have all passed their pre-recession peaks. On the other hand, U.S. growth is slowing just when Canada has moved from recovery to expansion and the first signs of cooling have appeared in domestic demand growth. We expect Canadian GDP growth to slow from 3%-plus in 2010 to its approximate cruising speed of 2% in 2011."

NBC Monthly Economic Monitor Oct2010

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