European Central Bank keeps rates on hold

6th October 2005, Comments 0 comments

6 October 2005, ATHENS - Shrugging off rising inflation rates, the European Central Bank (ECB) left its Eurozone interest rates unchanged at an Athens meeting Thursday, as had been widely predicted by economists.

6 October 2005

ATHENS - Shrugging off rising inflation rates, the European Central Bank (ECB) left its Eurozone interest rates unchanged at an Athens meeting Thursday, as had been widely predicted by economists.

Rates are at an historic low of 2 per cent as the ECB warily watches the impact of high oil prices on inflation and economic growth in the 12-member Eurozone. Growth in the zone's biggest economy, Germany, remains paltry.

A growing number of analysts now believe that the bank may not increase rates till the middle of next year. The bank last changed rates in June 2003.

Thursday's meeting of the bank's 18-head rate-setting council was held in Athens as one of the Frankfurt-based bank's twice-per-year out-of-town meetings.

The main concern in the zone has been inflation, which reached 2.5 per cent in September, its highest for a year.

ECB President Jean-Claude Trichet was to address a news conference in Athens and was widely expected to increase his anti-inflation rhetoric.

DPA

Subject: German news

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