In this edition of Central Bank Watch, we’ll cover the two major central banks in Europe: the Bank of England and the European Central Bank. There’s been somewhat of a divergence between the BOE and ECB in recent weeks, where the former has indicated that it will not accelerate its pace of rate hikes while the latter has given clear signals that it will move sooner than the previously suggested timeline. This narrowing expectations gap between the BOE and the ECB may soon spark a change of fortune for EUR/GBP, EUR/USD, and GBP/USD rates.
