Amidst weaker global economic growth and observed mild rate of inflation, the global adrenaline for monetary stimulus is believed and expected to spur in the days ahead as well. The monetary exercise is also sought to thwart the ongoing currency gains at the global arena. To overcome the current economic stances as mentioned, almost all the major central banks of core economies are of the opinion to pursue the monetary measures, undoubtedly for the better economic peripherals.

Despite the central banks of core global economies are considering the cut-down in the interest rates to spur liquidity in the market, the same has not yet laid the bed of roses for other economic variables to leisure. Yet, the economic reforms have boosted the stock market, measuring the effectiveness of the exercised economic agendas, at least considering the optimistic side. With the drop in interest rate by up to 1 percent from the central banks of major economies, rounding from Poland to Vietnam, the move of these and participating central banks to revive and boost the global economy, the economies are optimistically trusted upon to generate the growth figures, at least something to add on existing economic stance.

The ongoing global monetary stimulus regimes, despite exhibiting positive outlook via the economic variables, have not yet been able to demonstrate the initially anticipated inflationary effects in the core global economies. For instance, with Federal Reserve (Fed) continually exercising the stimulus package of $85 billion a month, the US economy has not yet realized the sought inflationary effects, suggesting the central bank to revise its unprecedented easing program. Considering the further need of stimulus amid sluggish economic growth compared to expected neutral growth rate, the Fed, for the time being, is set to continue the easing program till the US economy realizes the much hyped and desired status “until the situation improves.”

With the gigantic roles of the bank rate and expansionary policies to shape the economies, it is up to the central banks of major global economies, to name some the US, Japan, China, Euro zone etc., to effectively correlate these policy and reforms tools to re-bound the global economy and lead the seven billion plus global population towards greener pastures and economic prosperity.