Finance News

European Central Bank keeps rate

The European Central Bank (ECB) kept eurozone interest rates at one percent as expected, teeing up what should be an upbeat news conference with the bank's President following a strong run of economic data.

With inflation in the 16-country eurozone undershooting and the region's post-crisis economic recovery still in a delicate phase, the decision to keep rates at a record low for the 15th month running was widely expected.

ECB President Jean-Claude Trichet should have a spring in his step following the strong run of summer data, signs that the worst of the debt crisis is over, and evidence that recent bank stress tests have been given the thumbs-up.

Trichet is also expected to reaffirm that rates remain "appropriate", bolstering the consensus that they will remain on hold well into next year.

Source: TFI
Date: 06.08.2010 [ID: 257]

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