ECB leaves interest rates unchanged

ECB leaves interest rates unchanged

The European Central Bank (ECB) today decided to leave its key interest rate unchanged at an historic low of 1%.

The bank's Governing Council at its regular meeting in Frankfurt today "decided that the interest rate on the main refinancing operations and the interest rates on the marginal lending facility and the deposit facility will remain unchanged at 1.00%, 1.75% and 0.25% respectively," a statement said.

ECB President Jean Claude Trichet in a statement to the press said the bank continued to expect price developments to remain moderate over medium term, benefiting from low domestic price pressures.

"The latest information has also confirmed that the economic recovery in the euro area continued in the first half of 2010," Mr Trichet said.

" Looking ahead, we expect the euro area economy to grow at a moderate and still uneven pace, in an environment of high uncertainty."

He said he also expected inflation to remain below 2% in the eurozone.

Mr Trichet said risks to recovery included the possibility of increased tension in financial markets, as well as the still-weak growth rate of bank loans to the private sector.

He also said the pursuit of far-reaching structural reforms is essential, especially in countries that have experienced competitiveness losses in the past or that are suffering from high fiscal and external deficits.

"Measures should ensure a wage bargaining process that allows wages to adjust flexibly to the unemployment situation and losses in competitiveness," Mr Trichet said.

"Reforms to strengthen productivity growth would further support the adjustment process of these economies."

More in this Section

Microsoft pledges to remove entire historical carbon footprint by 2050Microsoft pledges to remove entire historical carbon footprint by 2050

''Politically-sensitive'' costs of rents and health insurance rise''Politically-sensitive'' costs of rents and health insurance rise

C&C shares sink on news of CEO exitC&C shares sink on news of CEO exit

Cairn Homes shares rise 2% on sales and buybackCairn Homes shares rise 2% on sales and buyback


They have absolutely nothing really to do with Jerusalem or indeed with any type of artichoke, so what exactly are these curious little tubers?Currabinny Cooks: Exploring the versatility of Jerusalem artichokes

Arlene Harris talks to three women who have stayed on good terms with their ex.The ex-factor: Three women on staying friends with their former partner

A child sleep expert outlines simple things to do during the day to help children settle better at night.10 clever daytime hacks to help your child get a good night’s sleep

Isabel Conway unveils the top travel trends for the year ahead.The travel trends for 2020: From the ‘skip-gen’ vacation to vegan breaks

More From The Irish Examiner