Is this the start of a major central bank divergence?

We held an online Drop-In session last week to discuss the outlook for interest rates in major advanced economies as the Fed hit the pause button while the ECB cut again. (See a recording here.) The key message was that the threat of US tariffs and the ongoing weakness of other advanced economies looks set to drive a significant policy divergence this year. This Update contains answers to related questions.

We will be hosting another online event to discuss the Bank of England’s decision and communications this Thursday 6th February at 15:00 GMT. Please click here to register.

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