ECB holds rates

The European Central Bank (ECB) left interest rates unchanged on Thursday, holding its nerve in the face of uncomfortably low inflation though it may unleash other measures to pep up a fragile euro zone recovery, the BBC informs. The decision to leave its main interest rate at 0.25 percent was generally expected by markets. The ECB also left the deposit rate it pays banks for holding their money overnight at zero. “This is no surprise,” RBS economist Richard Barwell said. “There will be two messages: firstly, things are eventually going to get better and therefore we don’t need to act today. Secondly, if things get any worse in the near future, we absolutely will act.” With inflation running in the ECB’s “danger zone” below 1 percent – 0.8 percent at the last count – the bank has discussed ending operations to drain funds from the financial system, a back door way of increasing liquidit


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