Time for Unifying Central Banks to Reconsider Approach?
This was meant to be the year of monetary policy divergence. Instead, major central banks’ paths -- albeit on different trajectories -- are converging once more. The Federal Reserve held fire Wednesday and scaled back tightening plans. Hours earlier, the Bank of Japan tweaked its stance to target a gap between short- and long-term yields to aid the financial industry. The European Central Bank is reviewing its go-for-broke stimulus approach while keeping ultra-easy settings, the Bank of England is expected to cut again, and China is keeping liquidity ample. Bloomberg's Enda Curran reports and Alvine Capital's Stephen Isaacs discusses with "On the Move" hosts Guy Johnson in London and Caroline Hyde in Berlin.