central bank divergence
while the world is getting used to rising interest rates almost everywhere – with noticeable exceptions in china，japan，and turkey – there are signs of central bank divergence on the horizon.
the divergence in central bank policies is not new. domestic economic conditions differ，calling for different responses. yet，the past year and a half，amid global inflationary pressure，has seen central banks act in unison – hiking up rates aggressively to quell inflation in fear of a wage-price spiral. more generally，in the past three decades，central bank policies，especially those in the developed counties，have become more synchronized.
the recent central bank actions serve as a reminder that as inflationary pressure recedes in some parts of the world，central banks will find themselves navigating complex challenges，occasionally marked by conflicting domestic imperatives.
