ECB rates set to remain at historic lows

ECB interest rates will be kept at their current historic low levels of 1% well into the second half of the year.

Weaknesses across the euro economies have kept inflation low and the ECB will leave rates unchanged as a result, according to Bloxham Stockbrokers economist Alan McQuaid, who said no change in rates is likely before September/ October. ECB rates last peaked at 4.25% in July 2008, when the ECB raised rates to curb the ongoing threat of inflation.

They were cut by 0.5% in October as fears over recession replaced inflationary concerns and rates have been cut consistently as the global recession has taken hold.