Words not deeds

Is the ECB preparing to cut rates? A steady flow of dovish leaks from Frankfurt has got markets excited. Most notably, Otmar Issing, the central bank’s hawkish chief economist, made ambiguous comments suggesting the bank was willing to cut soon. But investors should not hold their breath. The leaks are largely politics. The ECB fears it is being made a scapegoat for slow growth in Europe. It is not only erratic Italian politicians who are blaming the ECB for the latest eurozone slowdown. Jean-Cl...