Morgan Stanley warns of 'triple taper tantrum' in 2016

Morgan Stanley has warned of an approaching 'triple taper tantrum next year if the US, Japan and Europe all taper their monetary policies at the same time.

Analysts at the bank flagged the possibility that the long-mooted US rate hike cycle could be accompanied by central banks in both Japan and Europe also choosing to bring their easing policies to a close. Japan launched its latest stimulus programme in October 2014, while the European Central Bank president Mario Draghi also began quantitative easing earlier this year.  Morgan Stanley's global economist Manoj Pradhan has warned there is a change all three countries will begin tightening at the same time next year, should there be a substantial pickup in growth and inflation, according...