When the annual global central banks’ symposium kicked off at Jackson Hole, Wyoming last weekend, all eyes were focusing on US Federal Reserve Chairman Jerome Powell, as markets have been increasingly concerned about the fragile growth of the global economy, and the challenge of setting future monetary policy frameworks.
With additional rate cuts on the horizon and global central banks jumping on the easing bandwagon, the demand for hard assets like gold is expected to surge, and that inflation-hedging drive could push the prices of Bitcoin to $14,000-levels by the end of the year.
Surprising the Markets
Central banks around the world have been taking a more aggressive stance on easing, especially in the APEC region. Just this month, at least three central banks surprised the markets by lowering their interest rates. RBNZ went even further, slashing its benchmark rates more than expected by half of a percent in early August, noting that “Global economic activity continues to weaken, easing demand for New Zealand’s goods and services.”