On economics

On the face of it, predicaments for the European Central Bank (ECB) and Bank of England (BoE) look s...

On the face of it, predicaments for the European Central Bank (ECB) and Bank of England (BoE) look similar: both have to keep a careful watch on rising inflation, while at the same time, underlying economies are slowing. Interest rates in both regions are far higher than the US (where rates have been cut aggressively) and Japan. Looking a little more closely however, different forces seem to be at work. This has been indicated by central bank rhetoric, with the BoE appearing more concerned about the economic impact of credit stress than its continental counterpart. Recent announcement...