Global Weekly Economic Monitor &nbsp; Time to do nothing With headline inflation high but growth weakening, <br/>major central banks will likely stay on hold for now. &nbsp; <p>GLOBAL WEEKLY ECONOMIC MONITOR, 1 AUGUST 2008<br/></p><p>GLOBAL LETTER</p>Of bubbles and speculation <p>Expectations can play a large part in determining prices in a market such as for oil.</p><p>UNITED STATES</p>The song remains the same <p>We expect the FOMC to keep holding the funds rate at 2% at next week's meeting. </p><p>EUROPE</p>Time to do nothing <p>The ECB and the BoE ought to do nothing next week ? which is what we expect. </p><p>JAPAN</p>A gradual downward slope <p>The economy looks to be in a downturn, but its trajectory is still very gradual. </p><p>ASIA EX-JAPAN</p>China: Widespread weakening <p>The weakening economy and falling asset prices are reinforcing each other. </p><p>EMERGING MARKETS</p>Global inflation and EM <p>Inflation picking up relative to the developed world is not so bad for EM credit. </p><p>COMMODITIES</p>A comedy of errors <p>Short-run inelasticity, market opacity and ?noise? trading can distort energy prices. </p><br/>