ECB leaves interest rates steady
The European Central Bank ignored politicians’ pleas for an interest rate cut today, leaving its key refinancing rate unchanged as it waits for an expected recovery to take hold.
The widely expected decision at a meeting of the bank’s 18-member governing council in Frankfurt left the rate, which sets short-term central bank rates to commercial banks, at 2% – its level since a half-point cut last June.
Fears about the effect of a stronger euro on Europe’s budding recovery have led to political pressure for lower rates, which could dampen the euro’s rise and give the economy a short-term boost.
