02.07.2009
As had been widely predicted, the European Central Bank (ECB) has decided to maintain interest rates at 1pc during the meeting of its Governing Council in Luxembourg today.
In a short statement, the ECB announced 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 1pc, 1.75pc and 0.25pc respectively.
Analysts were predicting no change on the main base rate of 1pc, which, as a mark of the severity of the economic crisis now stands at the lowest it has ever been.
Attention will now focus on ECB President Jean-Claude Trichet when he explains the Governing Council’s decisions at a press conference this lunchtime, and analysts will be watching closely to see if he gives any indication as to whether or not interest rates will be dropped further later on in the year.
The ECB has now cut the main interest rate seven times since October 2008, with the most recent cut to 1pc taking place in May.
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