The European Central Bank and
the Interest Rates

The European Central Bank (ECB) held its main refinancing rate at 2 per cent for the 26th straight month on Thursday.

The decision was widely expected; just weeks ago speculation that the ECB would be forced to cut rates to stimulate growth in the faltering eurozone had reached fever pitch, but since then a run of stronger economic data in the 12-nation bloc has led most economists to conclude that rates will not be cut again in the current cycle.