Here's an interesting take from BOE officials—when monetary policy diverges between major central banks, there's actually a legitimate argument for them to move in opposite directions rather than follow the same playbook.

The thinking? Spillovers. When the Fed tightens or loosens policy, it doesn't stay neatly within US borders. Capital flows shift, currency markets react, and emerging economies feel the pressure. Sometimes that works against what your own economy needs.

So if the Fed is hiking aggressively and it's pushing sterling too high or draining liquidity from UK markets, the BOE might need to take a different approach—not to rebel, but to protect domestic conditions. It's less about defiance and more about offsetting unintended consequences.

This kind of policy divergence has real implications for asset allocation. When central banks dance to different beats, it reshapes where money flows, currency valuations, and ultimately risk appetite across markets. For traders and investors watching macro trends, this is the kind of nuance that separates predictable moves from the volatility that catches people off guard.