Sentences with phrase «policy divergence likely»

aud usd and nzd usd fundamental daily forecast monetary policy divergence likely to keep pressure on aussie kiwi

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The divergence in policy between the U.S. Federal Reserve and the Bank of Canada is happening: the Fed likely will raise interest rates at least a few times in 2017, while the Canadian central bank likely will do nothing at all.

We expect interest rates to rise, as U.S. and eurozone monetary policies gradually normalize, though structural factors and further central bank divergence are likely to keep a lid on rates.

However, the era of ever - widening policy divergence through interest rates is likely behind us.

Additionally, based on the theme of monetary policy divergence on a global basis, we would anticipate that, all things equal, the US dollar will likely strengthen versus other developed markets» currencies, particularly over the longer term.

However, further regional policy divergence, slow emerging markets growth and global liquidity risks are likely to keep market volatility higher, meaning effectively navigating a low - return world will remain a challenge.

This profile is broadly in line with that presented in the February Statement on Monetary Policy, though recent movements in world oil prices are likely to introduce a divergence between headline and underlying measures of inflation in the short term.

Against this background, we think that the divergences in the monetary policies of the major economies are likely to become more apparent, which could increase pressure on some central banks and magnify market volatility.

This policy divergence will likely have ramifications for assets prices in Europe and for bonds in particular.