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Earlier in the week, trade data showed that import growth remaining muted but exports regaining some strength.
"With demand growth remaining well above the enhanced rate of growth potential, some further tightening of monetary policy is needed," the organization said.
James said the US jobs data could give some insight on interest rates, with employment rising but wages growth remaining relatively steady.
As exchange-rate depreciation limits emerging markets central banks' actions, and with growth remaining under pressure, we expect strong redemption in emerging markets to continue.
Rather than worrying that the American economy will slow sharply, investors seem to be betting that the Fed can direct the economy to a soft landing, with growth remaining relatively robust and inflation continuing to be restrained.
With the forces restraining the economy starting to diminish, and with the long-term prospects for productivity growth remaining favorable and monetary policy accommodative, the outlook for economic recovery has become more promising.
Similar(22)
Even so, growth remained elusive.
Will wage growth remain subdued?
Undoubtedly, significant obstacles to sustained growth remain.
However, downside risks to growth remain.
Meanwhile, earnings growth remained very weak in February.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com