ECB holds rates at 1%

Analysts are now awaiting an announcement from ECB President Jean-Claude Trichet about scaling back of the central bank's emergency lending measures. He has suggest the next round of one year loans on 16 December  will be the last, and has also stressed there will be a scaling back of support from the ECB going forward. There is also speculation as to whether an interest rate premium will be added, or whether it remains at 1%. Adding a premium could be interpreted as preparation for interest rate increases. Recovery in the region is expected to be slow however as Eurostat, the ...