Steady as she goes

The world economy has shrugged off the result of the UK’s EU referendum and looks set to gain some momentum next year. In the US, rising core inflation will prompt the Fed to raise rates more rapidly than anticipated. But in most other advanced economies, inflationary pressures and economic growth remain weak. The ECB and BoJ are likely to loosen policy further before long. Meanwhile, emerging economies, led by China, are experiencing a cyclical rebound, and several commodity exporters are coming out of recession. But they will not return to their pre-crisis growth rates anytime soon.