ECB Rate Stays at 0.25%

The European Central Bank has kept interest rates on hold at 0.25 per cent for the second month in a row following November’s cut.

The decision was widely expected,  even though inflation had fallen  in December and  record unemployment is  weighing on consumer spending.


If the eurozone economy does not recover –  economists predict ther could be another cut in the main refinancing rate or a shift into negative deposit rates, which would impose a levy on banks holding reserves at the ECB .