ECB keeps rates at 1%
by Richard Kilner
Story link: ECB keeps rates at 1%
The Governing Council of the European Central Bank (ECB) has decided to retain the eurozone’s record low interest rate of 1%.
The decision, which was widely expected, comes as the Bank of England’s Monetary Policy Committee made a similar choice in keeping the United Kingdom’s interest rate at 0.5%.
The eurozone has had the 1% rate since May last year, and the UK’s rate has been unchanged for more than 12 months.
Europe generally is seeing a sluggish return to growth after the deep and prolonged recession, with recovery so gradual as to necessitate continued monetary stimulus.
However, the UK has halted its unprecedented £200bn quantitative easing asset purchase scheme, effectively printing money to try and boost the economy.