ECB remains benchmark rates at historic low levels

08:25, August 06, 2010      

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The European Central Bank decided Thursday to keep its benchmark interest rate at its historic low of 1.0 percent as the euro zone's economy has regained power and the pressure of inflation remains tame.

Besides keeping refinancing rate at 1 percent, the Governing Council of the ECB also held the marginal lending rate and the deposit rate unchanged at 1.75 percent and 0.25 percent separately. Those decisions are in line with market expectations.

"The available economic data and survey-based indicators suggest a strengthening in economic activity in the second quarter of 2010 and the available data for the third quarter are better than expected," Jean-Claude Trichet, chief of the ECB, said in a statement.

With a brighter European economic outlook, analysts said that the Frankfurt-based ECB would hold its benchmark rates unchanged well into next year.

On the same day, the Bank of England announced that it will leave its base interest rate at a record low 0.5 percent for the 18th consecutive month.



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