Central banks face interest rate divergence amid rising inflation pressures.

Global Central Banks Set to Diverge on Rates as Stubborn Inflation Stalks Fed, ECB

Quarterly outlook on what to expect from monetary policy A less synchronized picture is emerging for the world economy

Stubborn inflation keeping US and European officials in tightening mode is likely to further decouple global monetary policy in coming months as the rest of the world forges its own path.

With another hike in interest rates anticipated by the Federal Reserve and the European Central Bank for July, and some peers on a similar track, an aggregate gauge of borrowing costs calculated by Bloomberg Economics now shows a peak of 6.25% during the current quarter. That’s up from 6% foreseen three months ago.

But that higher overall number masks a far less synchronized picture than the world has been recently used to. Chinese policymakers started loosening last month, while central banks from India to South Africa are on a sustained hold for now….