ECB leave interest rates unchanged at 3.75%
12 April 2007
12.04.07
As widely expected, the ECB left interest rates on hold at 3.75% at today’s meeting following last month’s 0.25% hike. The market will now look towards the accompanying press statement for confirmation that further tightening is still on the cards for the months ahead. In his last statement, Trichet highlighted that rates are now ‘moderate’ as opposed to ‘low’ indicating that we may be near the end of the tightening cycle. Nevertheless, the committee have previously stated that they will remain vigilant against the threat of inflation and thus further tightening remains a possibility in June.
(Research Desk, written by Marc Cogliatti)