ECB holds Euro rate at 4.25%

Inflation in the Eurozone has fallen to 3.6%, but is still well above its target of 2%. However, the economic downturn, which has hit a number of economies in the single currency area, may prompt rate cuts in the near future. Ireland became the first economy to enter a formal recession in the third quarter as it suffered two consecutive quarters of negative economic growth. Other economies have also seen a sharp fall in output and the growing financial crisis might cause GDP to fall in a number of European states, leading to calls for a cut in interest rates. If you would like to co...