By Bill Witherell, Ph.D.
The European Central Bank (ECB) did not reduce key interest rates at its July meeting ending last week, contrary to the expectations of some observers. This decision leaves the US central bank, the Federal Reserve, to take the lead with a widely forecast rate cut at its meeting this week. However, ECB president Mario Draghi did strongly suggest that new monetary stimulus is likely to be adopted at the September meeting of the ECB's governing council.
This stimulus will probably include both rate cuts and new quantitative easing measures. Notably, the