Central banks in the major advanced economies are now moving in the same direction, but they are doing so at very different speeds. The Fed is tightening policy in earnest, with six rate hikes likely by mid-2019, and we expect the Bank of England to raise rates five times by the end of next year. In contrast, we think the ECB will disappoint those expecting it to signal more rapid withdrawal of policy stimulus, while the Bank of Japan is not yet contemplating any policy changes.
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