ECB maintain interest rates at 2%

THE European Central Bank held euro interest rates at 2% yesterday to help boost the slow growing eurozone economy which is being threatened by increased inflation fuelled by oil price increases.

Meanwhile the Bank of England increased sterling rates to 4.75% to cool the thriving British economy. The euro region's economy grew at less than half the pace of the British economy in the first quarter with unemployment of 9% curbing consumer spending.

The Bank of England said yesterday, while inflation is likely to slow in the next few months, underlying cost pressures have risen.