Following Federal Reserve goes out of fashion in 'messier' world economy

Bank of England the latest to push back against hawkish bets; Fed seen as most aggressive, driving record gains for dollar

The world’s most aggressive and synchronized monetary policy tightening in 40 years is entering a new phase as central banks prepare to slow the pace of interest-rate increases and break ranks over how much further they’ll go.

The shift toward a softer, less uniform rate-hiking campaign partly reflects growing disparities in a global economy still struggling with the aftershocks of the pandemic and Russia’s invasion of Ukraine. Another explanation is that debt burdens leave some economies more sensitive than others to tighter credit.

US growth remains resilient for now in the face of repeated rate increases by the Federal Reserve, which last