ECB Interest Rate Unchanged at 1%

The European Central Bank left its benchmark interest rate unchanged today – still at a record low of 1.0 percent .

Most economists  had forecast that  the ECB would to leave rates on hold. Euro zone inflation is low and the economy is shrinking fast, although some data have shown signs of improvement. The markets will be keen to see whether Trichet gives any signals that the ECB plans to keep rates low for a lengthy period, or alternatively, whether they could be reduced further.