ECB leave interest rates on hold at 4.00%
10 April 2008
The ECB today conformed to market expectations and left interest rates unchanged at 4.00% for a tenth consecutive month.
Eurozone inflation has surged to its highest level for almost 16 years while global financial turmoil has not yet led to a dramatic slowdown in economic activity, with businesses borrowing at record rates. Annual inflation in the 15-country region rose to 3.5% in March, from 3.3% in February, which all but ruled out any cut in ECB rates in the near future.
The focus now shifts to the accompanying news conference at 1.30pm where the market will be looking to gauge any insight to the committee’s thinking going forward.