ECB meets in Berlin, predicted to keep rates low

4th May 2005, Comments 0 comments

4 May 2005, BERLIN - The governing council of the European Central Bank convened on Wednesday in Berlin, with financial market analysts not expecting the ECB to change its rates that remained unchanged for nearly two years.

4 May 2005

BERLIN - The governing council of the European Central Bank convened on Wednesday in Berlin, with financial market analysts not expecting the ECB to change its rates that remained unchanged for nearly two years.

ECB president Jean-Claude Trichet was to hold a press conference after the meeting to discuss the bank's assessment of Europe's economic outlook.

The ECB's main refinancing rate has remained at an all-time low of 2.0 percent since June 2003, trying to help the European economic recovery, delivered a hefty 50 basis-point reduction.

With Europe's economy, and particularly that of Germany, still sluggish, and with inflation under control, analysts agreed that the ECB would have no cause to raise rates at a meeting that was being held away from the bank's headquarters in Frankfurt.

DPA

Subject: German news

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