Muddled central bankers

The rate-setting committees of both the Bank of England and the European Central Bank meet yesterday. Neither is expected to make any move. But the ECB, whose meeting will be held by phone, has to look ahead. According to a tradition of its own making, if the overnight interest rate is to be increased on September 6, it should telegraph a clear sign in August. The signalling – using well-understood code words – was a response to the ECB’s early difficulties with credibility. Investors have resp...