GRAPHIC-Liftoff grounded as market seizure redraws rate horizon
* Global market, growth outlook darkens
* Chart of 2-year yields: reut.rs/1QmVuae
* Chart of oil and inflation expectations: reut.rs/1PFllWf
* Chart of oil and S&P 500 correlation: reut.rs/1QmSDhx
By Jamie McGeever
LONDON, Jan 21 (Reuters) - The depth and ferocity of the selloff in world stocks and commodities so far this year has forced investors into a dramatic rethink of what the world's major central banks will do in 2016.
Trillions of dollars wiped off equity market capitalisation has undermined economic growth forecasts and a relentless oil price plunge has intensified deflationary forces. As a result markets now think central banks can go slower in tightening policy or even ease further.
Oil, which had already more than halved in price from the middle of 2014, has fallen a further 25 percent since the turn of the year to its lowest since 2002. Major equity markets have had their worst start to a year on record. And this week the International Monetary Fund surprised no one when it cut its global growth forecasts for this year and next.
The most dramatic market shift in central bank expectations has been for the U.S. Federal Reserve, which only last month raised U.S. interest rates for the first time in a decade. Continued...