ECB leaves rates unchanged on oil fears

THE European Central Bank left interest rates on hold yesterday over fears that soaring oil prices could fuel inflation and damage growth in the eurozone.

The ECB’s main lending rate was left at 2%, a 60-year low. No change is expected until the end of this year or early in 2005 depending on the outlook for oil prices.

After yesterday’s decision, the ECB president Jean-Claude Trichet said the surge in oil prices this year has caused great uncertainty for the European economy, which has only recently begun to show signs of picking up after three years in the doldrums.