A different type of G7 central bank divergence
Fragmentation risks economic and financial instability unless accompanied by government action
Add BT as a preferred source
ECONOMIES around the world have been subjected to a common external shock following the outbreak of the Iran war.
Yet, reactions among central banks have been quite diverse, judging from the flurry of recent monetary policy announcements. Some have raised interest rates, some have held them unchanged, and a few have even cut.
What makes this policy divergence even more notable is that it also exists within the Group of Seven nations. If there are no appropriate economic policy adjustments in response, the “normal” market reaction could easily aggravate existing imbalances and geoeconomic stresses.
TRENDING NOW
DBS completes US$1 billion significant risk transfer deal, a first for Singapore bank
About 1 in 7 Singapore families has income of at least S$30k a month; share almost doubled in 5 years
Malaysian tycoon Vincent Tan’s sell-downs point to pruning rather than an exit plan
Not in education, employment or training: Why more Hong Kong youths are opting out of work
