Eurozone interest rates kept on hold by ECB

The European Central Bank (ECB) has kept eurozone interest rates on hold at 1%, as had been expected. It is the 15th month running that rates have stayed at this record low, as the ECB continues to seek to help economies recover from last year's recession. ECB president Jean-Claude Trichet said that while the eurozone economy was growing, uncertainty remained. We continue to expect the euro area economy to grow at a moderate and still uneven rate, he added. Mr Trichet also said that inflation would remain low into the medium and longer term. Analysts say eurozone rates need to remain at the current level because governments are cutting back on public spending, which is weakening economic growth.

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The above article was extracted from Skyline updates of Skyline College. Skyline College is amongst the top MBA and BBA institutes in Delhi, Gurgaon (NCR).