Editorial - New year starts with a bang

“A slow-growing global economy and diminished price pressures mean that many central banks are easing monetary policy, despite managing very different economies. The first wave broke in January, when central banks in Egypt, India, Romania, Switzerland and Peru all announced cuts to their policy rates. These moves were followed by similar action in Canada, Denmark (twice), Pakistan, Singapore and Turkey. These institutions fall roughly into two camps. There are those that are primarily cutting rates to battle disinflation, and those that are exploiting a fall in inflationary pressures to support economic growth. Denmark, Romania and Switzerland fall into the former category, the rest into the latter.”

Emphasizing the relation between the gold price and economic uncertainty, the EIU pointed out that in the second half of 2014, when the USD rose against other major global currencies, gold prices in USD terms fell by close to 20 per cent in four months. “However, prices have risen by 10 per cent in USD terms since the beginning of 2015, revealing fears that the oil price decline is a precursor to a period of global distress.
The direction of the gold price will be a useful leading indicator as to whether the current round of monetary easing has had the desired effect—or whether further easing is in prospect,” the EIU report added.
While most analysts predict an exciting year ahead, Business Arena will stay focused on the latest economic trends and their impact on the domestic market. We will also continue to present success stories, interviews and new opportunities, while our traditional business events will provide a platform for business community represen­tatives to voice their complaints, exchange of views and ideas, and make new contacts with other business community members.