Ray Dalio, Chairman and Chief Investment Officer, Bridgewater Associates attends the session 'Where Is the Chinese Economy Heading?' of the annual meeting of the World Economic Forum (WEF) in Davos, Switzerland January 21, 2016. REUTERS/Ruben Sprich
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Calls for action sounded at this week's annual meeting of the World Economic Forum in Davos, Switzerland, where central bankers including Mario Draghi, Haruhiko Kuroda and Raghuram Rajan mingled with the international elite. Global stocks rallied on Friday on speculation that central banks will expand stimulus measures.Just weeks since Janet Yellen's Fed raised its benchmark rate for the first time in nine years, the notion that the move marked the end of the easy-money era is now being tested.The Fed itself projects four more quarter-point increases this year, while bond traders see one.Economists at JPMorgan Chase & Co. predict the ECB will cut its deposit rate to minus 0.4 percent from minus 0.3 percent and increase its monthly purchases by 10 billion euros.That reflects an analysis that central banks can achieve little more and governments must step up. The International Monetary Fund this week predicted inflation of just 1.1 percent this year in advanced economies, around half the rate most policy makers target.
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