# Central Bank Policy Divergence Brief The major developed central banks show a **hawkish-dovish split**: the Fed (4.00%), ECB (2.25%), and Bank of Korea (3.00%) are actively tightening to combat persistent inflation above target, while the Bank of Canada (2.25%) and Bank of England (3.75%) have paused despite similar inflation pressures, signaling confidence in their disinflationary progress. Meanwhile, the Banco Central do Brasil (13.75%) stands apart with an exceptionally restrictive stance, cutting only modestly despite inflation moderating, reflecting acute currency and expectations-anchoring risks unique to emerging markets. This divergence reflects differing inflation trajectories and domestic vulnerabilities—developed economies face geopolitical energy shocks, while Brazil confronts currency depreciation and unanchored expectations.