In our view, speculation that the Bank of Japan is
preparing to dial back its ultra-loose monetary policy
is misplaced. Meanwhile, the ECB is likely to leave
its policy rates at rock-bottom levels until September
2019, if not later. In contrast, with the US economy
booming the Fed will probably raise rates two more
times this year and the Bank of England is likely to
hike interest rates again next week. Policy
divergence therefore has further to run.
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