L&G predicts central bank divergence on interest rates

ECB rate cut to drive modest recovery in eurozone

ECB in Frankfurt
The European Central Bank in Frankfurt

After years of the world's major central banks adopting broadly similar approaches to interest rates, we are nearing a time when they will decouple, according to Legal & General Investment Management (LGIM). The US and UK are looking to raise interest rates soon, while central banks in the eurozone and Japan are aiming to ease policy in order to spur growth. LGIM expects the US Federal Reserve to begin changing its rhetoric to prepare markets for rate increases, which the firm believes will rise

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