Rates: The Ecb Does Not Alter Them

By Author: Italo Zanotti
Total Articles: 62
Comment this article

The European Central Bank left rates unchanged at 1% of reference in Euroland, as widely expected by the market. This was decided today, the Governing Council. Bankers in Frankfurt did not affect either the rate on deposits (0.25%) and marginal (1.75%). The cost of borrowing in the eurozone remains so low. Also yesterday, the Bank of England has left without the cost of borrowing at a record low of 0.5%. Interest rates in the eurozone continues to be at an appropriate level, said Jean-Claude Trichet, president of the ECB, saying that economic activity continued to expand. However, unemployment in the euro zone countries should continue to rise for a while ', weighing the prospects for growth in consumption. Trichet added that inflation will remain "subdued" and that inflationary expectations are under full control. The BCEdeciderà meeting in March on the further withdrawal of the measures taken to help the banking system to cope with the crisis. According to numbers from the International Monetary Fund, the deficit / GDP bound of the sixteen countries in the euro zone this year is about 6% compared with more than 10% in Japan ...
... and the United States, said the president Trichet, saying that it is " crucial "that all countries, especially those suffering from an excessive deficit procedure, comply with their commitments. "We do not discriminate between individual countries - Trichet said in response to questions about issues of Spain and Portugal - All countries must respect what has been decided. We shall be extremely vigilant, as is the European Commission to ensure that commitments are respected. " About Greece "the ECB's position is that the Governing Council approve the medium-term targets set by the greek government to bring the deficit below 3% of GDP in 2012," the president said, noting that the measures "are a step in the right direction now needed that 'the objectives are achieved, and this also applies to those of deficit reduction set for 2010.
Photo: Eurotower ECB headquarters in Frankfurt.