Interest Rate Decisions Loom

The ECB will issue it’s interest rate decision for July this week, as well as the Bank of England next week. Do they really matter anymore? My answer is no. The BOE and ECB along with many other central banks have already cut interest rates to the bone. The only decision that would really make any waves in the markets would be a move towards raising interest rates. I don’t think we will be seeing that any time soon.

Let’s see if I can guess what will come from the ECB this week. I expect they will basically say no change in interest rates for the forseeable future. The European economy is slow, but showing some signs of stabilization. The central bank will continue to monitor the economy for changes and any future actions will be data dependant.

We will see how well I can predict the future in a few short days.