Rate stays at 2% amid signs of recovery

THE European Central Bank left its benchmark interest rate at a half-century low of 2% amid signs the economy in the dozen euro nations may be recovering.

The euro economy should rebound after “subdued’ growth in the first half, the ECB has said. The bank will keep rates unchanged until “evidence of the recovery is firm by mid-2004”, the Organisation for Economic Co-operation and Development said last night.

“The ECB has done the utmost to boost growth,” said Olaf Wortmann, an economist at the Frankfurt-based VDMA machinery association, which represents 3,000 companies including carmaker DaimlerChrysler AG and steelmaker ThyssenKrupp AG.