ECB defies call for rate cut

THE European Central Bank has left interest rates unchanged at 2% despite fears that the rise of the single currency will undo the tentative economic recovery in the eurozone.

As expected, interest rates remain at record low even after calls earlier this week for a cut to prevent the euro’s gain against the dollar from hitting the eurozone economy.

Earlier this week EU Trade Commissioner Pascal Lamy said that the runaway strength of the euro could become a worry for European exporters. The ECB board members paid no attention to the calls and kept the main interest rate at a 60-year low.