European Central Bank Leaves Its Key Refinancing Rate Unchanged at 2 Percent
Published:
6 August 2004 y., Friday
The European Central Bank left its key refinancing rate unchanged Thursday at 2 percent, waiting for solid evidence that Europe's economic recovery will gather strength.
The decision by the Frankfurt-based bank's 18-member governing council meeting by teleconference due to the summer vacation season was widely expected by economists. The ECB has left the rate untouched since a half-point cut in June 2003.
Economists expect the bank to keep rates steady for another few months and then to start raising it to ward off inflation, which can be a side effect of growth.
Recent statements by bank officials only reinforced ECB President Jean-Claude Trichet's remarks after July's interest-rate meeting, when he stressed that the bank has "no bias" toward a rate move either way but remains vigilant about economic indicators for future inflation and growth.
The 12 countries that use the euro are emerging from slow 0.8 percent growth in 2003, with growth of 1.3 percent in the first quarter over the year-ago period. But the pickup has lagged behind more robust expansions in the United States, Japan, and China.
Higher oil prices which increase the cost of gasoline and industrial raw materials have helped raise the inflation rate in the euro zone to an annual rate of 2.4 percent in July, according to the early estimate by the European Union statistical agency.
Šaltinis:
/abcnews.go.com
Copying, publishing, announcing any information from the News.lt portal without written permission of News.lt editorial office is prohibited.
The most popular articles
President of the Republic of Lithuania Dalia Grybauskaitė welcomed the decision taken by the U.S. Government to transport shipments for the international mission in Afghanistan by transit via the Klaipėda Seaport.
more »
EU Solidarity Fund aid to repair storm damage in France and Portugal was approved by the Budgets Committee on Thursday.
more »
The European Investment Bank and the Government of Samoa formally agreed to support the rehabilitation and upgrade of independent water schemes in the Pacific island state under a EUR 250,000 technical assistance programme.
more »
Steps to overhaul the European Union's flagship single market were discussed on Tuesday (9 November) by MEPs and interested parties.
more »
Strategy to secure a sustainable EU energy supply and support economic growth over the next decade.
more »
EU funding to help 850 former workers in the aircraft maintenance industry around Dublin find new jobs was approved by the European Parliament on Thursday.
more »
Saffron farmers in western Afghanistan hope to oust opium as a harvest crop.
more »
The European Commission has approved an application from Poland for assistance from the European Globalisation adjustment Fund (EGF).
more »
New plans for EU industry to create jobs while keeping manufacturing in Europe.
more »
The European Commission has approved two applications from Spain for assistance from the EU Globalisation Adjustment Fund (EGF).
more »