ECB leave interest rates unchanged
08.02.07
As widely expected, the ECB kept interest rates on hold at 3.50% when they met today, as risks to the economy remain finely in the balance. The key was in the accompanying statement where Trichet was far more hawkish than he had been in January. The return of his code words ‘strong vigilance’ (against inflation) indicates a further 25bps hike is likely in March gave the Euro a boost against both Sterling and the Dollar.