Thought their goal is the same, which is to establish price stability, but their economic conditions are certainly different. U.K has booked it self a first class ticket to join the US recession while the Euro Zone is still on the waiting list. We can't deny that the materialization to the credit turmoil and the global slowdown had begun to emerge in each economy and for that we are filled with jitters for the worst to come as now credit woes are back in the markets!!!

First to take the bow will be the BoE and steady rates it is. Balancing their act among surging inflation and intensifying downside risks to growth is agitating their stance. They are now concentrated on anchoring inflation expectations that is affecting the medium-term target. Inflation ran at 3.0% in April and surely has escalated further in May, the BoE expect inflation to prolong the consolidation above their target from what they have projected, and now the only thing they have placed their bets on is that a slowing economy and spare capacity will bring inflation rates down.

The credit crisis has hit their bank and their financial system really well, and now with their problems in the housing sector the plague effect is catastrophic as businesses slow their expansion, the labor market is weakening and consumers have tightened their wallets. Construction is contraction and the most serious of all is the contraction appearing in the services sector which accounts for 74% of the GDP, while consumption and manufacturing are nearing a halt and for that I tell you do not be surprised of the second quarter GDP for it may have actually not grown or even contracted!

As for the ECB, Trichet has been saying that price stability remains their goal, while growth is ongoing yet on a slower pace. Sure some of the nations have started growing in the red zone like Italy and Spain, yet France and Germany which accounts for the lion's share have been posting stronger than expected resilience which is helping the EU to continue to grow.

The first quarter had been much above expectations yet as we are into the consecutive quarter, growth has been emitting softening signals while still inflation according to the flash Eurostat estimate has shot the roof once more at 3.6% in May. The ECB has no options for now but to continue to withhold rates at their current levels since money growth is still vigorous, eroded disposable income is one of the main reasons consumers trimmed spending and now finally wage increases are threatening more damage as second round effects spread the contagion further.

Surely with the new surprising development as Bernanke now is supporting a strong dollar policy, which might shed of the heat from energy prices, as it