ECB leaves interest rates unchanged

There was relief for Irish mortgage holders today as the European Central Bank opted to leave its base interest rate unchanged at 1.5%.

Following a meeting of its Governing Council the ECB said it had decided that the interest rate on the main refinancing operations and the interest rates on the marginal lending facility and the deposit facility will remain unchanged at 1.50%, 2.25% and 0.75% respectively.

There were some fears that the rate would increase to combat growing inflation in the eurozone.

However many commentators have now said that the bank may be pushed to reverse the two rate increases it has announced this year.

ECB President Jean-Claude Trichet will hold a press conference later this afternoon.