The global monetary policy divide is widening as the U.S. Federal Reserve, Bank of Japan and major counterparts lag behind Norway and Australia in raising interest rates, a trend that is set to continue into 2010.
While Fed Chairman Ben S. Bernanke and BOJ Gov. Masaaki Shirakawa may soon unwind some of their emergency measures, JPMorgan Chase & Co. doesn't expect a Group of Seven member to lift rates before the third quarter.
The divergence may boost the currencies of those nations shifting first, with New York University professor Nouriel Roubini warning low U.S. rates may be generating "huge" bubbles as investors borrow dollars to invest in other assets.