Central banks are entrusted with the task of controlling a nation’s inflation, interest rates and price stability; ultimately preventing the economy from failing.
These institutions inform and implement monetary policy, with the aim of controlling money production and distribution to better unemployment rates and economic growth. Monetary policy is primarily executed by the central banks through management of interest rates and bank reserves (deciding the amount of money banks can lend and retain at any one time). The former is hugely important as the cost of borrowing and lending money impacts loans, investment and economic strength.
A central bank will also act as an emergency resource for commercial banks when they need a loan - another economic safety-net for the country.
As one of the UK’s leading investment managers, LGIM offers knowledge and experience that can bring real benefit to investors looking to understand economics, policy and politics.
Find the latest research on future path of central bank policies around the world, from inflation control to central bank interest rates.
Our Asset Allocation team includes dedicated and accomplished US, European and Global economists, whose focus is to assess the macroeconomic environment across the developed world. This includes researching government policy, emerging political trends, as well as the outlook for economic growth and inflation. Our economists then work with our team of strategists and portfolio managers to translate their views into what this means at a portfolio level.