Central Banks: Divergent Responses

The Financial Times tells us that this will be a busy week. The purchasing managers survey (aka ISM) will come out Monday and employment on Friday. Inflation reports are due out in the Eurozone and Great Britain. The ECB is likely to raise rates to 4% while the Bank of England is likely to hold them steady at 5.25%. On Tuesday, the Reserve Bank of Australia "could increase interest rates from 7 to 7.5 per cent, while Canada is expected to cut rates by 25 basis points to 3.75 per cent."