ECB holds interest rates steady

FINANCIAL commentators who found Wednesday's Budget uneventful were left short of excitement again yesterday as the European Central Bank (ECB) held interest rates steady at 2%.

"It was a non-event and a case of no comment from the ECB," said one observer, as the bank appeared to dismiss concerns about the continued rise of the euro against the US dollar.

The ECB decision was widely expected by the markets and means that the bank's main refinancing rate has been unchanged for six months, following a 0.5% cut in June. ECB president Jean-Claude Trichet repeated his concern over last week's decision by European finance ministers to allow Germany and France exceed the borrowing guidelines set out in the Stability and Growth Pact governing eurozone fiscal policy.