Michael Browne, global investment strategist, Franklin Templeton Institute
A clear bifurcation has emerged between the US, Europe and Asia. The US views rate increases as an itch not to be scratched, and the experience of 2022 suggests caution is warranted. Inflation moved through the US faster and with lower amplitude than anywhere else.
However, the situation was different in Europe, the UK or Asia. There is hope rate rises can be avoided but the balance is delicate.
If the ECB does not act this time, it will likely move at the next meeting. The BoE is in a similar position. In Asia, rate increases are expected, though some countries, like Japan and Australia, were already on that trajectory.