ECB Rate Kept at 1%

June 6th – The European Central Bank has kept their interest rate unchanged at 1%  today.
The decision was widely expected, although some economists had forecast a quarter percentage point interest rate cut.

Mario Draghi, ECB president, warned last week that the bank could not “fill the vacuum” created by politicians’ inactivity.

Banner - Savings (3.75% IR)

The ECB rate has never gone below 1%.  Recent Eurozone  news showing inflationary pressures reducing and economic activity weakening could have justified an interest rate cut, the ECB council apparently decided to hold fire – at least for this month.