Economics
Inflation Doubts Don't Stop Global Central Banks Following Fed
- BOJ gets flexible as BOE raises rates and ECB lays groundwork
- Officials must consider side effects caused emergency tools
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Some of the world’s biggest central banks are taking baby steps on the path away from easy money despite uncertain inflation outlooks that suggest they need to tread more carefully.
The Bank of England raised interest rates last week to the highest since 2009, even as Governor Mark Carney fretted about the “uncomfortably high” chance of a hard Brexit. The European Central Bank, while worried about trade protectionism, is ending bond purchases and preparing for a possible rate hike next year. The Bank of Japan is sticking to a massive stimulus program amid feeble inflation but giving bond yields more room to rise.