Jackson Hole Might Reveal Potential Divergence Between Central Banks

This year’s Jackson Hole Economic Symposium may provide an early indication of the scale of the potential divergence between central banks, Richard Flynn, managing director at Charles Schwab U.K., writes in a report. The interest-rate rise cycles for the biggest central banks, the Federal Reserve and the European Central Bank, appear to be over, he writes, noting that “Policy is now diverging, with the Bank of Brazil and other emerging-market economies starting to cut rates, joining the People’s Bank of China in more accommodative monetary policy.” Flynn adds that the Reserve Bank of Australia is on pause and the Bank…