World Bulletin / News Desk
"And expectations of normalization in monetary policies of advanced economies are more pronounced, while a monetary tightening trend is foreseen for 2019 in some emerging economies," the bank said in its 26th volume of financial stability report.
"Global economic growth maintains a positive outlook despite rising protectionist trends and geopolitical risks," the CBRT noted.
The bank stated that the fall in global economic policy uncertainty turned into a rise again as a result of U.S.-led developments and changes in global trade policies while a discrepancy between advanced economies with respect to the economic policy outlooks was seen.
"Indeed, together with uncertainties regarding protectionist trade policies and other accommodative fiscal policy expectations, the predictability of economic policy in the U.S. has reduced," the bank said.
Regarding the completion of elections and the Brexit process, the CBRT said: "The economic policy uncertainties in the EU and the UK have partially declined."
"In addition to the acceleration in global economic activity, there was an increase in portfolio flows towards emerging economies thanks to the increasing global risk appetite in the first quarter of 2018 together with the positive growth outlook in emerging economies," it said, adding:
"However, owing to the tightening in the global financial conditions since April 2018 and the decline in risk appetite, a weakening in net portfolio flows towards emerging economies has been observed."