Monetary Policy Rates
Tracking the cost of capital set by major central banks.
| Central Bank | Policy Rate | Trend |
|---|---|---|
| US Federal Reserve | 5.25 - 5.50% | Peaked |
| European Central Bank | 4.50% | Peaked |
| Bank of England | 5.25% | Peaked |
| Bank of Japan | 0.10% | Hiking |
Policy Divergence
When central banks diverge in their policy paths (e.g., the Fed holding high while the BOJ maintains near-zero rates), it creates massive arbitrage opportunities in the currency markets, specifically the Yen carry trade.