Eurobank leaves rates unchanged

The European Central Bank left its key interest rate unchanged at 2% today as it waits for signals that the continent’s hesitant recovery has built up more strength.

The decision by the bank’s 18 member governing council, meeting in Frankfurt, was widely expected by economists.

The key refinancing rate, which sets the cost of central bank credit to commercial banks, has stood unaltered since June 2003.

ECB President Jean-Claude Trichet has said Europe’s moderate recovery is continuing on the back of a growing world economy. But there have been enough worrying signs about growth in the 12 countries that use the euro to make the bank put off its next expected move, a rate increase to ward off inflation as the recovery picks up.