European Central Bank

European Central Bank leaves interest rates on hold again

BERLIN — The European Central Bank has left interest rates at 1% for the 16th consecutive month as a still-uncertain global outlook clouds optimism about the eurozone's recovery.

The ECB's decision Thursday to leave its benchmark refinancing rate at a record low, where it has stood since May 2009, was widely expected.

The ECB is due to issue revised growth forecasts and may lift its prediction for 2010 from a range centering on 1%.Strong German growth helped the 16-nation eurozone's economy to grow 1% in the second quarter over the previous three months.However, that pace is likely to cool and fears about the U.S. recovery have grown.

From Tponews.in  
Frankfurt - The European Central Bank (ECB) delivered an unprecedented 75-basis-points cut in interest rates Thursday underscoring the dramatic deterioration in Europe's economy.The reduction was the biggest rate cut since the ECB took charge of eurozone monetary policy about ten years ago and brought borrowing costs in the currency bloc down to 2.5 per cent