Global Economics

Global Central Bank Watch

28 June, 2018

Fed-ECB divergence has another year to run

Over the next twelve months we expect the gap in policy rates between the US and euro-zone to continue to widen. The Fed is likely to raise rates every three months while the ECB leaves rates unchanged until late next year. Further ahead, though, we think the Fed will be forced to loosen policy again as the US economy slows. In other major advanced economies, we think the Bank of England is still most likely to raise rates in August. But the BoJ will not change its policy settings for the

Access this publication and more, take our free trial subscription today.

Free Trial

Already a subscriber? Simply log in to view this article.

Save to Library

New Book

Making a Success of Brexit
and Reforming the EU

by Roger Bootle

"Outstanding - engaging - absorbing"
Daily Telegraph

Buy now on Amazon

Get the App

The Capital Economics apps are a great way for clients to keep up to date with our latest research.

Capital Economics AppsFind out more
We use cookies to ensure you get the best experience on our website. Read our Cookie Policy for more information.