No hike in interest rates expected until mid-2011

INTEREST rates are being held at their record low 1%, with economists expecting no hike until at least the middle of next year.

European Central Bank (ECB) president Jean-Claude Trichet said yesterday that Europe’s economy is stronger than some investors think and signalled the bank doesn’t intend to do more to fight the sovereign debt crisis for now.

“There is a tendency from the outside to be excessively pessimistic” about Europe, Mr Trichet said.