Inflation will remain below ECB's target, thus increasing
the policy divergence with the Fed.
To be clear, this should not prevent the ECB from hiking rates before 2021, but the result is a «soft guarantee» and a stronger case for
policy divergence with the US, which the ECB hopes will eventually result in currency depreciation.
Not exact matches
For starters, despite the Fed's interest rate hikes, the rate differentials
with Japanese government bonds and German Bunds were near extremes, suggesting the markets were already reflecting the worst of
policy divergence.
Things started to change in 2014,
with the prospect of monetary
policy divergence.
Still, the combination of pushing dollar - yen higher via clear
divergence in BOJ
policy from the Fed's, combined
with mounting market expectations for BOJ action might be too difficult to resist.
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.
«The SNB cites the likelihood of increased
divergence in monetary
policy, probably
with the ECB vs the Fed in mind, as a reason for the timing of the floor discontinuation,» said Morten Thrane Helt, senior analyst at Danske Bank.
This
divergence in
policy makes it difficult for multinational food companies, which could theoretically be issued
with many different fines.
Although the vote shows that keeping in - line
with US
policy was not a persuasive case on its own, it should be remembered that the transatlantic relationship has seen differences and
divergences before and recovered (for example, over the Falklands War).
There is increasing
divergence with England on qualifications
policy; for example, GCSE and A-Levels will still be able to be assessed in a modular way.
As for lying, I have observed many scientists seem to have no difficulty
with lying when they connect, without a shred of evidence, supportive modeling or any data or often even any theory such things as extreme weather is getting worse or is linked to CO2, wet areas will get wetter and dry areas will get drier, that the ocean swallowed the «missing heat», using a proxy upside down doesn't matter, the models are still adequate for
policy even after such a huge
divergence from reality, coral die - back is due to manmade warming rather than fishing, all warming must be bad rather than beyond a certain threshold, etc, etc, etc..
According to her, «the authoritative parent shares the reasoning
with child behind her
policy... autonomous self - will and disciplines conformity is valued by the authoritative parents... (she) exerts firm control at points of parent — child
divergence but does not hem the child in
with restrictions.