|    FM Home   |    FM News   |    FM Forum   |    FM Blog   |   
Saturday 22nd of May 2010
December 3, 2009    

Euro zone interest rates on hold at 1%

Bookmark and Share

by Kay Murchie
Euro zone interest rates on hold at 1%

The European Central Bank (ECB) today elected to keep interest rates on hold at the historic low of 1% for the seventh consecutive month, as widely expected.

ECB president, Jean-Claude Trichet, told reporters at a news conference that the euro zone economy is expected to grow at a moderate pace in 2010.

He also added that some of the ECB’s liquidity measures were not required any more and they would be scaled back.

Earlier this week, it emerged that the consumer prices in the euro zone rose for the first time in seven months in November, according to Eurostat.

Prices rose by 0.6% in the 12 months to November after a 0.1% decline in October. It is welcome news for the economy after analysts feared that the 16-nation euro zone was heading for a sustained period of deflation.

A short period of deflation (where prices fall rather than increase) could be a serious threat to the economy because it deters consumers and businesses from spending in expectation of falling prices.

Last month, it emerged that the euro zone had exited recession after experiencing positive growth in the third quarter.

Discuss this in the Finance Markets forums

Story link: Euro zone interest rates on hold at 1%

Related financial stories to: Euro zone interest rates on hold at 1%:
Previous: «
Next: »

Visited 828 times, 1 so far today

No Comments »

No comments yet.

RSS feed for comments on this post.

Leave a comment

Tags: , , , , , , liquidity measures, , , scale back