Central banks take unlikely paths — thanks to tariffs

Central banks take unlikely paths — thanks to tariffs

As U.S. tariffs ripple through the global economy, central banks are charting starkly different courses.

The Fed remains cautious, maintaining steady rates while monitoring inflation risks and trade shocks.

In contrast, the ECB and BoE are beginning to trim borrowing costs amid disinflation and slowing growth.

Elsewhere, central banks — including those in Australia, India, and China — are embracing easing measures to buffer against mounting headwinds.

In short: rate policy is no longer synchronized but tuned to local economic cadence.

Source: https://rsmus.com/insights/economics/global-central-bank-outlook-divergent-paths-on-rates.html