Central Banks Are Not Converging Just Yet!

Synopsis: Global financial conditions appear to be easing, at first glance. However, a closer look paints a different picture. Despite global trade uncertainty, possible supply-side shocks (postponed business investment and oil prices) and geopolitical uncertainty, not all Central Banks are converging. While the Federal Reserve has signaled a possible cut by end-2019; the ECB, whilst turning increasingly dovish is keeping policy rates unchanged until mid-2020. Conversely, the Bank of England is far from a rate cut just yet and the Nordic countries are continuing monetary…