Economics
ECB Is Lonelier Than Ever After a Hawkish Turn Led by Fed
- Pivotal week may set tone of policy divergence for months
- Central banks deliver at least five rate hikes since Monday
European Central Bank headquarters beside the River Main in Frankfurt.
Photographer: Alex Kraus/BloombergThis article is for subscribers only.
With central banks from Washington to London this week signaling more alarm over faster inflation, the ultra-stimulative path of the euro zone and some of its neighbors appears lonelier than ever.
A collective move to look beyond the pandemic slump and toward the risk rising of accelerating prices emerged with a warning from the U.S. Federal Reserve that it may taper bond-buying soon, the prospect of higher interest rates as early as this year from the Bank of England and at least five other hikes from central banks around the globe.