ECB Interest Rate Remains at 1.5%

The European Central Bank has again kept  interest rates unchanged at 1.5 per cent for the third month in a row.

ECB president Jean-Claude Trichet said  “We expect the euro area economy to grow moderately, subject to particularly high uncertainty and intensified downside risks”
“Inflation should fall below 2 per cent in 2012, MrTrichet said, and price risks were “broadly balanced”.

The change in the ECB’s inflation view suggests it has abandoned its policy tightening course and that interest rates are now on hold.
Earlier this month some “experts” were talking about rate cuts as early as  Dec 2011 because of  concern about faltering growth

The euro fell today by the most in a month versus the dollar  because of he lower chance of future  interest-rate increases.

In the UK – the Bank of England maintained rates at the all time low of 0.5%