Citi cuts 2015 global growth forecast to 2.6% from 2.7%, 2016 forecast to 2.9% from 3.1%, according to note.
- 4th consecutive downgrade to Citi’s year-ahead global growth forecast; cumulative downgrade (0.6 percentage points) sharpest since 2011
- Global conditions are likely to remain disinflationary
- Doesn’t expect EM weakness to be followed by a V-shaped rebound in DM due to:
- Higher weight of EMs in global growth
- Relative paucity of monetary policy options in DM
- Overhang of high public and private debt levels
- Expects first Fed rate increase in Spring 2016, first by BOE in 4Q 2016; sees further easing in coming months from ECB, BOJ, PBOC