Top central banks go their own way into stimulus exit

BoE 1st major central bank to raise rates since pandemic. ECB cuts stimulus; BoJ set for decision on friday

Britain became the first G7 economy to hike interest rates since the onset of the pandemic on Thursday, with the US Federal Reserve also signalling plans to tighten in 2022 but the European Central Bank only slightly reining in stimulus.

The different paths taken by major central banks underline deep uncertainties about how the fast-spreading Omicron variant will hit the global economy and their differing views on stubbornly high inflation and cross-border supply chain snags.

They also reflect the uneven impact of the pandemic on the world’s top economies. Fed Chair Jerome Powell on Wednesday forecast the United States was heading towards