The European Central Bank (ECB) kept its main interest rate on hold at a record low of 1% for the ninth month running today, in line with expectation.
The Central Bank also maintained its overnight deposit rate, which acts as a floor for money markets, at 0.25% and left its marginal lending rate at 1.75%. Explaining the decision, ECB president Jean-Claude Trichet said interest rates remained 'appropriate'. He added economic activity in the Eurozone grew around the turn of the year, lifted by a recovery in exports, but warned to expect only 'moderate' growth in the Eurozone economy this year, in an uneven recovery which would be subject to risks. The ECB will decide in early March on the timescale for phasing out some of the measu...
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