But we don't think this should mean the start of a global trend. Much of this shift relates to local conditions: growth and employment are heating up in both Canada and Norway, while a Brexit-beaten pound has driven up UK inflation. The world’s largest central banks retain highly accommodative policy. Fed, ECB and BoJ balance sheets are at all-time highs above the USD 4trn mark. Balance sheets are still growing: the last year has seen BoJ and ECB assets grow by some USD 1.5trn – similar in scope to the original global financial crisis injections. And this week the BoJ even reiterated its stimulus drive, pledging to continue adding USD 720 billion in local bonds per year, its most accommodative policy in history.
 
As a whole, central banks are only edging, rather than rushing, toward normalization, meaning continued loose policy can provide support for global equities. And the pockets of hawkish policy that exist can be seen as opportunities for investors. For example, we prefer the Canadian dollar against the Australian dollar, as their fundamental and interest rate outlooks diverge. And we maintain our preference for the Swedish krona, which looks cheap considering current growth signals, against an underweight on the Swiss franc, whose safe-haven appeal should gradually fade in the months ahead.