At its regular policy meeting next week, Federal Reserve Chairman Jerome Powell is likely to repeat that a reduction in the Fed’s monthly bond purchases (currently USD120bn/month) is still “ways off”.

Today’s meeting of the ECB’s governing council formalised the move to a symmetric inflation target. Disagreements over the future of quantitative easing were left to September. 

Uncertainty about the country’s political orientation may continue to weigh on Chilean assets, which already carry significant discounts. 

Although they remain firmly in negative territory, we see increasing real yields as the principal driving force for higher nominal US rates in 2H 2021. 

We could see policy moves to boost domestic demand over the remainder of the year.

PWM's view of the week ahead.

The CIO's view of the week ahead.

Despite the rapid recovery in earnings, we remain neutral on equities overall, seeing modest gains over the rest of the year.