Thursday, August 7, 2008
ECB holds at 4.25%
The European Central Bank held rates steady today at 4.25%, a whopping 2.25% higher than the current rate from the Fed. One can admire their inflation fighting tenacity, however a small rise in the dollar against the Euro suggests markets think Europe is too much on the cusp of a recession to be playing that game. I think I am not alone in believing we can anticipate rate drops in coming meetings.