Tags: European | Central | Bank | ecb

ECB Holds Rates to Assess Inflation, Growth Risks

Thursday, 02 Aug 2012 08:09 AM

 

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The European Central Bank (ECB) held its main interest rate at a record low of 0.75 percent on Thursday, waiting to see whether inflation and the eurozone economy slow further before deciding on any fresh cut in borrowing costs.

Eurozone inflation held steady at 2.4 percent in July — just above the ECB's target of close to but below 2 percent.

After the decision, the euro rose against the U.S. dollar to $1.2285 from $1.2264 before, while European shares pared gains.

The ECB also left the interest rate on its deposit facility at 0.0 percent — a low it went to for the first time last month to encourage banks to lend overnight to other banks, where they receive a higher rate, currently about 0.1 percent.

The ECB held its marginal lending facility — or emergency borrowing rate — at 1.50 percent.

© 2014 Thomson/Reuters. All rights reserved.

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